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Guidance greeted as stimulative for entrepreneurs

By HU MEIDONG in Fuzhou and CHENG YU in Beijing | China Daily | Updated: 2023-07-21 09:03
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A view of the booth of Tencent at an expo in Shanghai. CHINA DAILY

China's latest guidance to drive the development of the private sector will boost confidence among private enterprises, allowing them to make more innovations and stimulate market vitality for greater economic growth, according to private company executives and industry experts.

They made the comments as the Communist Party of China Central Committee and the State Council, the country's Cabinet, released a document on Wednesday detailing 31 measures to drive the development of private enterprises. Notably, the guidance encourages entrepreneurs to look to the "Jinjiang experience" to actively explore innovation.

Jinjiang, Fujian province, has transformed itself from an economically struggling city into a top manufacturing base with a well-developed private economy, creating the "Jinjiang experience".

Lin Xiaofa, chairman of smart kitchen and bathroom products maker Jomoo Group, said that he is proud of being an entrepreneur and looks forward to the future development of the private sector.

"The mentioning of the 'Jinjiang experience' in a top-level document has brought us great confidence, since the company is a practitioner and beneficiary of such an experience," Lin said.

Lin said that Jomoo focuses on technological innovation, and has devoted itself to making bathroom products for more than 30 years.

"With the guidance, we are inspired to focus on the real economy and continuously improve our technological innovation capabilities so as to realize high-quality development," he added.

The private sector has been a driver of the nation's economic growth and innovative development. Private firms contribute about 50 percent of the country's tax revenue, 60 percent of GDP and 70 percent of technological innovation, said the Ministry of Industry and Information Technology.

According to the latest data from the State Administration for Market Regulation, the nation's top market regulator, the number of registered private enterprises exceeded 50.93 million by the end of May.

The guidance also said that more efforts will be made to support private companies in expanding their overseas business and engaging in overseas projects in an orderly manner.

The country will support private enterprises to boost their competitiveness on the global stage and beef up their presence in the design and development of core components and high-end manufactured goods, it said.

Cai Rongjun, general manager of Fujian Panpan Foods, said that the company feels greatly encouraged to expand its overseas footprint. The company recently accompanied local government officials as part of trade delegations to overseas markets including the Philippines, Thailand and Vietnam, he said.

Such efforts, along with the guidance, will encourage the company to continue to beef up its international presence and contribute to the development of raw material supply chains around the world, he added.

Zhong Huiyong, a finance professor at Shanghai University of International Business and Economics, said that such moves further show that the country's current support for private enterprises is not only to promote the development of certain areas or large private enterprises, but also to drive private firms of different sizes and in different regions, and in an all-round way.

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