Study On The Influence Of Competitive Neutrality On The High-quality Development Of Private Enterprises

Since the reform and opening up,Chinese private enterprises have grown stronger and become an important force in promoting sustained and healthy economic growth,maintaining social stability and serving the socialist modernization.But at present,Chinese private enterprises are still facing a severe low competitive neutrality market environment.Compared with state-owned enterprises,private enterprises have certain disadvantages in factors acquisition,market access,financial subsidies and other aspects,which seriously hinder the healthy development trend of private enterprises and even the whole macro-economy.It has become one of the key tasks for China to construct a complete theoretical framework of competitive neutrality reform.In order to create a competitive neutrality market environment,the party and the government recently increased the intensity of competitive neutrality regulation.For example,“the Decision of the CPC Central Committee on Some Major Issues Concerning Comprehensively Deepening the Reform” adopted at the Third Plenary Session of the 18 th CPC Central Committee proposed to clean up and abolish all kinds of regulations and practices that hinder the unified market throughout the country and fair competition.In 2016,The State Council issued “the Opinions on Establishing a Fair Competition Review System in the Construction of the Market System”,which has great significance for promoting the reform of competitive neutrality,requiring policy-makers to fully implement the fair competition review system.According to the State Council’s Government Work Report in 2019,enterprises under all forms of ownership should be treated equally in terms of factor acquisition,admittance,business operation,government procurement and bidding in accordance with the principle of competitive neutrality."Decision of the CPC Central Committee on Several Major Issues Concerning Upholding and Improving the Socialist System with Chinese Characteristics and Promoting the Modernization of Chinese Governance System and Capacity" adopted at the fourth Plenary Session of the 19 th CPC Central Committee continues to proposed to create a market environment in which entities under all forms of ownership compete in an open,fair and just manner.In addition,Chinese economic development has entered a new normal.Facing the tense domestic and international situation,it is urgent to transform the economic development mode,promote the strategic adjustment of economic structure,and take the road of high-quality development."the Recommendation of the CPC Central Committee on Formulating the Fourteenth Five-Year Plan for National Economic and Social Development and the Vision Goals for the Year 2035" adopted at the Fifth Plenary Session of the 19 th CPC Central Committee in 2020 has made high-quality development as a strategic goal for Chinese medium and long-term development.And high-quality development of private enterprises is an important basis for the realization of high-quality development of the whole macro-economy.To this end,“the Fourteenth Five-Year Plan for National Economic and Social Development and the Outline of the 2035 Long-range Goals” issued in 2021 specifically put forward the proposition of promoting the high-quality development of private enterprises in a separate section.Based on the above background,a series of questions worth thinking can be raised: How should China construct its own theoretical framework of competitive neutrality reform? Will the competitive neutrality help promote the high-quality development of private enterprises?What is the internal mechanism of competitive neutrality acting on the high-quality development of private enterprises? Does the fair competition review policy,which has great significance for promoting the reform of competitive neutrality,play a positive economic role on the high-quality development of private enterprises?Following the core research approach of “ theoretical framework construction-basic relationship empirical test-transmission mechanism empirical test-key policy effect evaluation”,this paper carry out a systematic analysis of the above problems.The conclusions of this paper include the following aspects:Firstly,Chinese competitive neutrality principle content should include some core contents of corporatisation,financing neutrality,market access neutrality,taxation neutrality,subsidies neutrality,regulatory neutrality and government procurement neutrality,and some running auxiliary policies of state-owned enterprises classified reform,state-owned enterprises mixed ownership reform,state-owned enterprises capitalization operation and antimonopoly reform.To establish and improve the implementation organization of the competitive neutrality including the Competitive Neutrality Committee,the Tax Bureau,the Ministry of Finance,the State-owned Assets Supervision and Administration Commission,the "Association of Financial Regulators",the Market Supervision Administration Department.To establish competitive neutrality implementation mechanism including establishing a belief in competitive neutrality,establishing and perfecting the incentive mechanism of rewards and punishments,strengthening the linkage and coordination mechanism of different departments,optimizing the fair competition review policy,building an effective complaint mechanism,implementing gradually and controlling the implementation intensity and constructing systematic information disclosure mechanism.To reasonably plan the roadmap for the implementation of competitive neutrality.The first step is to carry out comprehensive corporate transformation of state-owned enterprises,the second step is to promote state-owned enterprises classified reform,and the last step is to implement the core content of competitive neutrality,while promoting state-owned enterprises mixed ownership reform.In addition,while reforming state-owned enterprises,it also need to guide private enterprises to improve the modern enterprise system.Secondly,based on the data of “the 11 th Private enterprise Survey” and using the least squares regression(OLS)method,the empirical analysis finds that competitive neutrality is helpful to promote innovation input,innovation output,environmental protection input,employment absorption,workers’ wages and charitable donations of private enterprises.After the robustness test,such as changing the measurement of high-quality development,changing the measurement of competitive neutrality and removing the real estate special industry,the conclusion is still valid.The basic relationship is more obvious in large private enterprises,elderly private enterprises,and areas with better legal environment.Thirdly,based on the data of “the 11 th Private enterprise Survey” and using the least squares regression(OLS)method,the empirical analysis finds that competitive neutrality can affect the high-quality development of private enterprises through "financing effect","risk expectation effect","goal identification effect" and "social status effect".After the robustness test,such as changing the measurement of competitive neutrality,changing the measurement of credit access,and removing the real estate special industry,the conclusion is still valid.Fourthly,based on the data of Shanghai and Shenzhen A-share listed enterprises,the handsorted data of the work report of prefecture-level city government,the hand-sorted change data of prefecture-level city government officials,the debt data of prefecture-level city financing platform,and using the double difference model(DID)and triple difference model(DDD),the empirical analysis shows that the competitive neutrality market environment created by the fair competition review policy can promote the total factor productivity of private enterprises.The conclusion is still valid after the robustness tests,such as constructing the dummy policy impact time point placebo test,randomly selecting the dummy experimental group placebo test,PSMDID test,removing the real estate special industry,and controlling variables lag one stage.Competitive neutrality can affect the total factor productivity of private enterprises through "rent-seeking weakening effect" and "financing effect".Government high-quality development policy bias,enterprise size and the ratio of capital to labor has a positive moderating effect on the basic relationship,policy uncertainty and local government debt has a negative moderating effect on the basic relationship.This paper has important theoretical and practical significance.From the theoretical sense,this paper enriches the research on the construction of Chinese theoretical framework of competitive neutrality reform,expands the research on the economic effects of competitive neutrality,enriches the research on the internal mechanism of economic effect of competitive neutrality,supplements the research on the determinants of high-quality economic development.From the practical sense,this paper has certain reference significance for the government to formulate and implement high-quality economic development strategy and also helps private enterprises to formulate healthy and sustainable development strategy.