The Development Environment Of Private Economy

Private economy, being bom and growing up after the opening up and reforming of China, has gone through trials and hardships and become the foundation of national economy and an important component of socialist marketing economy. Moreover, it's now one of the important forces to promote social productivity, a mainstay of increase in China's economy, a promotion to the adjustment and optimization of the ownership system and a major channel to employment.Private economy is the most vigorous increasing factor in China's economy and the hope to solve the "Sannong Problem"(Agriculture, Countryside and Farmers) and all-round developing of a well-to-do society. However, the environment that the private economy is facing during the course of development is still worrying. Although the entire situation has been in the course of improvement, there are still many obstacles as the following: unsatifying external environment concerning policies, regulations, economy and culture, which consists the major problem in its development; unsatisfying internal environment concerning their own drawbacks such as lack of creativity, lack of prestige, strong influence of family system; the severe competition and challenge coming from the overseas companies as well as domestic great state-run enterprises with the proceeding of the economic globalization and China's entry to WTO. Owing to the above concern and worry, this thesis aims to make a profound analysis on the situation so as to offer corresponding solutions. As far as this thesis is concerned, the essential way to create a fair environment for the development of private economy is to dispel the obstacles that come from the system itself, while there is also an urgent need on changing the government functions and reforming of financial system. On the other hand, the best and the only way to solve the problems concerning internal environment is trying hard to improve itself, adhering to "Four Selves Principle", undertaking new missions and mounding a new image. On the whole, private economy may well play an important and powerful role in the world economy if they can make the most of the comparative advantages, master the rules of the games and take an active part in economic globalization.