Asian correspondent in Beijing, Huang He

The press conference on "Safeguarding the Healthy Development of Private Economy" was held on August 18th in Beijing. Mr. Qi Fang, Executive Chairman of Petroleum Chamber of Commerce of All-China Federation of Industry and Commerce, Chairman of Petroleum Chamber of Commerce of Hebei Province, and Chairman of Zhangjiakou United Petrochemical Company, pointed out that: "Nowadays, the private economy contributes more than 60% of the social fixed asset production, contributes about 60% of the GDP, and undertakes more than 80% of the social employment positions. However, although private enterprises are large in size, they are not strong, and there are still many unpredictable difficulties and risks in the development of private economy. Compared with central enterprises, state-owned enterprises and multinational corporations, they belong to the disadvantaged group, and they are more in need of the whole society to pay attention, care and protection."

Qi Fang, Executive Director of the Petroleum Chamber of Commerce of the All-China Federation of Industry and Commerce, believes that the recently encountered 'Shanghai Arbitration Case of Financial Derivatives between Standard Chartered Bank and Zhangjiakou United Petroleum and Chemical Co., Ltd.' is a typical case of multinational corporations infringing on the nonpublic economy with financial derivatives. Private enterprises rely on each other to do business in good faith, underestimating the risk of enterprises in investing in financial products. Under the current situation, private enterprises should actively respond to national policies to better protect the healthy development of the private economy and avoid major economic losses.

By the simple way of internet search we found out that since 2008-2016 period, Standard Chartered Bank has been in the negative news within China, the media exposure index climbed straight up. And the disputes are mostly about financial derivatives, all kinds and sizes of financial products.

In February this year, the Supreme Procuratorate formulated the Opinions on Giving Full Play to Procuratorial Functions to Safeguard and Promote the Healthy Development of the Non-Public Economy in accordance with the Law, which suggests that 'we should adhere to the equal protection of the non-public economy in accordance with the law, accurately grasp the boundaries of the law, and crack down on and proactively prevent criminal acts that infringe on the development of the non-public economy in accordance with the law'.

Zhang Jinfeng, Executive Director of Zhangjiakou United Petrochemical Company, also warned more enterprises around the theme of how to protect the healthy development of the private economy, and investors should beware of traps when it comes to risky derivatives trading in financial products. This shows that the financial era is coming, in this wave, private enterprises want to develop and grow at the same time, how to recognize the wide variety of financing projects, systems, products, how to fully recognize the risks, how to make the right choice, especially for their own awareness of the protection of the enterprise, is the private enterprises need to improve and strengthen the ability.