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Deputies, advisors express support for private sector

By Ma Qing | chinadaily.com.cn | Updated: 2023-03-10 06:40
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A worker installs valve parts at a factory in Bazhong, Sichuan province, on Feb 24, 2023. [Photo/VCG]

Legislators and political advisors have expressed their desire to support and stimulate China's private sector at the ongoing annual meetings of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference, also known as the two sessions.

They have said favorable business environment is key to enabling private enterprises in taking bolder approaches and focusing on their development, and that Chinese private enterprises are the main force of high-quality development which contributes to the national economy.

China's private sector has grown vigorously since 2012. The number of private enterprises increased from 10.86 million at the end of 2012 to 47.01 million by the end of August 2022.

The proportion of private enterprises in the total also increased, from 79.4 to 93.3 percent.

Creating a fair and stable business environment is a prerequisite for private entrepreneurs to conduct their business with confidence, officials and executives have said. The development of a good business environment requires joint efforts from many parties.

A favorable investment environment is a key factor in improving the confidence of manufacturing enterprises and boosting their production investment, said Hu Dezhao, chairman of Guangzhou Baiyun Electric Equipment Co Ltd.

Xiong Jianming, chairman of China Fangda Group Co Ltd, suggested setting up a credit incentive mechanism to address defaults on private enterprise accounts by granting a mark of certification.

The private sector in Huzhou, Zhejiang province contributed to over 70 percent of the city's GDP and more than 90 percent of employment in 2022. Hong Hupeng, an NPC deputy and the city's mayor, said the best business environment should be created as a key variable to promote high-quality development.

More effective measures should be taken to support the development of small and medium-sized enterprises and solve the problems of private enterprises, Hong added.

Private enterprises are a vital part of the socialist market economy, said Qu Yongyi, a researcher with the Institute of Industrial Economics at the Chinese Academy of Social Sciences and a national political adviser.

The issue of expectations and confidence in private enterprises is not only a matter of current economic and social development but also of the overall landscape of the Chinese path to modernization, Qu added.

The private economy has been indispensable on the road to high-quality economic development, said Zhai Meiqing, president of Heungkong Holding and also a CPPCC member, adding private enterprises are the main force in innovative development and essential to innovation in science and technology.

The idea that "enterprises are the main body of innovation" needs to be further clarified, making enterprises the first choice for scientific and technological innovators, said Yao Lijun, chairman of Konfoong Materials International Co Ltd and also a CPPCC member.

Zeng Yuqun, chairman of Contemporary Amperex Technology Co Ltd and also a CPPCC member, said private enterprises have to walk at the head of the new energy batteries industry, as high-quality development sets higher requirements for private economic development.

The battery company will leverage its advantages and accelerate research and development of new technologies and products, he added.

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