Shenzhen to intensify crackdown on speculation, smears against private businesses

South China’s Shenzhen vowed on Wednesday to intensify its crackdown on ill-intentioned speculation and smears against private businesses among its newly 20-point measures to boost the private economy, according to Shenzhen Fabu, the official WeChat account of the Shenzhen Government Information Office.

The move marks a prompt response from local authorities to implement the comprehensive guidelines recently issued by the central government to support the private sector.

According to the measures, Shenzhen will step up efforts to combat deliberate speculation, rumors, and defamation against private enterprises and entrepreneurs. The city will also crack down on "online blackmouths" in accordance with the law to create a favorable social atmosphere that respects and supports the growth of private entrepreneurs.

The city will also actively promote leading private enterprises in emerging fields such as new energy vehicles, artificial intelligence, and new energy storage. Moreover, it will foster national and provincial-level characteristic industrial clusters for small and medium-sized enterprises.

To strengthen financing support for private enterprises, Shenzhen will establish a 5 billion yuan ($685 million) fund to hedge risks in loans to small and micro enterprises and reduce the guarantee fee rate for financing these enterprises by government financing institutions to below 1 percent.

Efforts will also be made to support private companies in expanding the overseas market and participating in overseas projects brought by opportunities from the Belt and Road Initiatives and the Regional Comprehensive Economic Partnership.

Shenzhen is home to a long list of renowned private firms such as Huawei, Tencent, and BYD. Its private sector has been one of the most dynamic in major Chinese cities, playing an outsized role in the city’s economy, according to Shenzhen Daily.

By the end of 2022, there were 2.379 million private companies in Shenzhen, accounting for 97 percent of the city’s overall firms. The private economy comprised 55.9 percent of the city’s GDP, according to the report.