Fortunes of private companies in the hands of local governments

FOLLOWING THE INSTRUCTIONS OF the central authorities, at least seven provincial-level regions have issued supportive policies to ease the burden on private enterprises. Beijing News comments:

The policies are in response to President Xi Jinping's call on Nov 1 for the development of private enterprises to be supported. It is expected that if they are well-implemented, the private companies in these regions might be able to save about 1 trillion yuan ($143.9 billion) in total. More local governments are expected to follow their lead.

Local governments' attitude toward private enterprises is the crux of the matter, as they are the makers and executors of local industrial, tax and administrative policies - which must address the practical needs of local private companies.