The CPC's pledge to better safeguard "legitimate" private property has laid a solid foundation for at least 20 years of rapid progression within the country's private economy, an academic has said.
"It comes at a time when the country's booming economy has allowed almost every family to turn some income into investment," Chinese Academy of Social Sciences Professor Liu Yingqiu said.
"It will help ensure more private property to transfer into investment and become social assets eventually.
"In this way, the fortune of the society may expand effectively, giving its members a better life, as well as improved income and more private property in return."
Liu, an economist, said the promise is an essential prerequisite to China's ambitious goal to create a better-off society in two decades.
The Party has, for the first time, stated clearly all legitimate income - whether it is from laboring or not - should be protected, which has been particularly applauded by private business owners.
Previous stipulations on private property had created problems when the country was striving to adequately feed and clothe its huge population. Most people had little private property.
As the country becomes richer and private investment assumes an increasingly important position in the national economy, more Chinese will receive income aside from doing labor.
"You will see so many people getting extra interest payments from their bank deposits, stocks and property leases," Liu said.
"Although these incomes are under legal protection by the current legislation, their expansion has brought concerns."
As a consequence, some have shifted their property abroad or decreased their investment, indirectly dampening the future development of the Chinese economy.
But after this year's Party congress, such worries can be relieved, Liu said.
Although a special law protecting property has not yet been introduced as many people expected, Liu said it should take place in the near future now the Party has reached a consensus on the matter.
Liu's sentiments are echoed by Xiao Liang, a senior consultant from the China Society of Private Economy Studies.
"The promise of the Party to better safeguard private property preludes further improvement in the domestic investment environment of private enterprises," Xiao said.
"But real change will come after related laws or regulations take place following a corresponding revision of the Constitution."
He said the trial experiences of regions like South China's Guangdong Province and Ningbo, in East China's Zhejiang Province, which boast the country's most advanced private economies and have established special local regulations to promote their development, serve as valuable references.
(China Daily November 22, 2002)
