China’s top leadership has been at pains to talk up support for the private economy in recent months, but local authorities have drawn criticism for undermining business stability and intervening in company operations.
Several regional economic powerhouses, such as Shanghai, Zhejiang, Jiangsu and Guangdong, are trying to kick start their coronavirus-battered economies through tax breaks and incentives for overseas capital.
Doctors and nurses in some of China’s public hospitals are facing pay cuts or salary delays amid a surge in coronavirus cases, as local government finances come under extreme strain.
While personal spending is forecast to rebound with the relaxation of Covid controls, Chinese consumer confidence is being undermined by fresh outbreaks and weak confidence about income prospects.