Top China Economist Calls for State to Curb Influence in Startup Funding
In a recent statement, leading Chinese economist Guo Tongshen urged the Chinese government to reduce its influence on financial support for startups. He noted that excessive state intervention could negatively impact innovation and the growth of small and medium-sized enterprises. The economist emphasized that private entrepreneurs often face difficulties in obtaining financing, while state funds primarily support large state-owned enterprises.
Guo Tongshen pointed out that to stimulate real economic growth, China needs to improve its financial infrastructure by providing more opportunities for private and foreign investments. In his remarks, he stressed the importance of creating favorable conditions for startups, which can be achieved through tax incentives and simplifying licensing procedures. He also called for a systematic approach to financing that would take into account the needs of small businesses.
The economist warned that otherwise, China might face slowing economic growth, which would negatively impact the global economy. He expressed concern about the current level of state control and called for a more balanced approach that would foster an innovative environment and support entrepreneurial spirit in the country.
Guo Tongshen's statement resonates widely among experts and entrepreneurs, as it reflects growing concerns about how government policies affect the startup ecosystem in the country. Many separate the possibility of job creation and growth from state involvement, calling for a freer market for sustainable economic development.
Supporting these thoughts, new data shows that startups receiving support from private investments tend to demonstrate higher growth rates and innovation compared to those relying solely on government funding. Thus, national experts have been urging a rethinking of financial management in the context of rapidly developing businesses.
This opinion reflects an increasingly realistic approach to understanding how government policy can both support and suppress economic growth. In the context of the need to create a more aggressive and effective small and medium-sized enterprise sector, the challenges raised by Guo Tongshen require urgent attention from government officials.
