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New-type enterprises' role bigger in growth amid woes

By ZHENG YIRAN | China Daily | Updated: 2022-05-31 09:49
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An employee of JD, a Chinese tech firm, works at a logistics center in Beijing. [Photo by Wu Xiaohui/China Daily]

New-type enterprises, a key component of China's real economy, are ramping up efforts to play a bigger role in better integrating digital and real economies, and safeguarding stable growth amid COVID-19 headwinds.

New-type enterprises-companies engaged in emerging technologies, industrial categories and business modes-have been playing an increasingly important role in ensuring stable economic expansion and promoting high-quality growth during the COVID-19 era, said a recent report.

The report, issued by the China Council for the Promotion of International Trade Academy, said that in the first quarter, China's new-type enterprises have made numerous efforts to ensure industrial chains and promote foreign trade.

Lan Qingxin, a professor at the Academy of China Open Economy Studies, University of International Business and Economics, said: "Facing the increasingly complex COVID-19 and international situation, China's foreign trade in the first four months still increased by 7.9 percent year-on-year. The number of foreign trade enterprises seeing increased import and export activity rose 4.7 percent on a yearly basis. China's foreign trade is resilient, and the key role of new-type enterprises cannot be ignored. Specifically, their role had been mainly featured in building networks and platforms."

Lan, who is also president of UIBE's Yangtze Delta Region Trade Institute, added: "Based on international networks that encompass manufacturing, sales and services, new-type enterprises maintained relatively resilient cross-border order delivery capabilities. Furthermore, the platforms that they established promote efficient coordination between supply and demand, stimulate the import potential of consumer goods and help optimize the quality structure of exports."

For example, in recent years, Chinese e-commerce giants like JD and Alibaba Group have been building warehouses overseas to improve the delivery capacity of exporters. They are also setting up warehousing and logistics nodes in areas close to buyers to carry out functions such as cargo storage, processing, local distribution and after-sales service to help domestic enterprises go global even further.

Liu Hui, director of the JD Research Institute for Consumption and Industrial Development, said: "Through the integration of actual practices and digital technologies, new type of real economy enterprises greatly enhance cost-effectiveness. Their value has been demonstrated in a more thorough manner."

Li Mingtao, head of the research institute at the China International Electronic Commerce Center, urged China's new-type enterprises to build a better business ecosystem.

"For those that emerged from traditional enterprises, they need to form new growth points. For internet-based companies, they need to invest more in the real economy and put more effort into docking resources online and offline," Li said.

In the second quarter of this year, new-type enterprises in China are expected to continue to lead the way in bringing about stable economic growth and inject vitality into the Chinese market, Lan from the UIBE said.

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