The policy map — jointly released by the Party’s central committee and the State Council — was vague on the specific actions that authorities want regulators to take.
But it suggests Beijing’s unprecedented crackdown on private enterprise, which began late last year, could last for some time. China’s five-year plans are the cornerstone of economic and social policy in the country, and the latest plan runs through 2025.
The government has cited a need to safeguard national security and protect the interests of its people. Regulators have widely blamed the private sector for creating socioeconomic problems that could potentially destabilize society and affect the Party’s grip on power.
Beijing’s grievances with each sector vary.
The clampdown has wiped out more than $1 trillion in market value for many powerful Chinese companies and even caused some big proponents of Chinese investment to think again.
“Is it six months, 12 months? I don’t know yet,” Son said. “[But] in one year or two years, under the new rules, and under new orders, I think things will be much clearer … Once things get clearer, then we are open to resuming active investment.”
The muted reaction hints that investors may be more accepting of the “new normal” for Chinese business, “with China’s regulatory crackdown now seemingly set for years ahead,” wrote Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, in a research note.
— Michelle Toh contributed to this report.