The Xinhua News Agency article pointed out that there have been misunderstandings and noises about “suppressing the private economy” recently. Regardless of whether it is standardizing the platform economy or regulating off-campus training institutions, it is not aimed at the private economy. It should be noted that the state’s policy of supporting the development of the private economy has never changed, nor will it change in the future.
Since the beginning of this year, although the global epidemic is still evolving and the external environment has become more complex and severe, private enterprises, as an important part of China’s economy, have been steadily moving forward with the support of the central policy, relying on their own vitality and resilience, and showing high quality New trends in development.
At present, the development situation of the private economy is generally good, but under the impact of the epidemic, some private enterprises are facing greater development pressure. Recently, a number of regulatory development and supervision measures have been introduced, which has triggered some discussions, and even misinterpretations and noises of “suppressing the private economy” have appeared.
In April of this year, General Secretary Xi Jinping pointed out during an inspection tour in Guangxi that we encourage the development of private enterprises. The party and the state provide support when private enterprises encounter difficulties and provide guidance when they encounter difficulties. We hope that private enterprises can develop boldly with confidence.
It should be noted that the state’s policy of supporting the development of the private economy has never changed, nor will it change in the future. The “14th Five-Year Plan” starts a new journey. Opportunities and challenges coexist. Private enterprises should grasp the general trend of the times, strengthen their confidence in development, work together to create a better tomorrow for the private economy, and inject surging impetus into the high-quality development of China’s economy.
The private economy is moving forward steadily, showing a new trend of high-quality development
Since the beginning of this year, the epidemic has continued to repeat, and the prices of raw materials have risen sharply. The middle and lower reaches of the industry chain and small, medium and micro enterprises with a relatively high proportion of private enterprises are facing difficulties such as rising operating costs, increasing accounts receivable, financing difficulties, and expensive financing, and operating pressures Larger.
In order to support the development of the private economy, from market access, business environment, to tax reduction and fee reduction, financing support… the state has introduced a series of policies and measures. And vitality.
In response to rising raw material prices and large fluctuations in the cost of production factors such as labor, Midea Group has strengthened strategic cooperation with upstream, strengthened the role of futures hedging, strengthened the research and development and application of new materials, and reduced the impact of price fluctuations. In the first half of the year, Midea’s revenue increased by 24.98% year-on-year.
Liu Baoze, who runs two small businesses in Beijing, benefited from the deferred principal and interest payment policy of inclusive small and micro enterprise loans. The bank loan of nearly 3 million yuan was postponed to the end of the year, and the development of the enterprise was slowed down. “Although sales have not returned to the level before the epidemic, the worries have been resolved!” Liu Baoze said.
On the whole, the private economy has been advancing steadily since this year.
——In the first half of the year, an average of about 77,000 market entities were born in the super-large market in China every day, and the newly established private economy tax-related market entities increased by 27.4% compared with the same period in 2020;
——From the perspective of private investment, a weather vane for observing economic vitality, from January to August, private investment in fixed assets increased by 11.5% year-on-year, surpassing the growth rate of national fixed asset investment (excluding rural households) during the same period;
——In the whole year of 2020, the operating income and net profit of private listed companies increased by 8.2% and 36.5% respectively year-on-year, which was much higher than the growth rate of all listed companies. The profit growth in the first half of this year has slowed down, but the net profit has increased on average over the two years. Speed still maintains a good level of 17.47%…
As China’s economy is moving towards high-quality development, the development quality of the private economy is also improving.
Private enterprises have become an important source of scientific and technological innovation, and new kinetic energy has been continuously released——
Aiming at the innovative opportunity of the integration of artificial intelligence and the Internet of Things, the artificial intelligence company Beijing Megvii Technology Co., Ltd. uses its self-developed robots, intelligent logistics operating system and solutions to realize the automation and intelligent upgrade of logistics, and it can be a single enterprise Users bring tens of millions of economic benefits.
Among my country’s high-tech enterprises, the private “army” is growing day by day. From 2018 to 2020, the proportion of private high-tech enterprises in the country has increased from 92.1% to 92.4%, and the proportion of their sales revenue has increased from 66.2% to 70%.
“Facing the future, the company’s own management and innovation capabilities are more critical.” said Gao Rui, an associate researcher of the China Enterprise Confederation. Among the top 20 of the “2021 China Top 100 Innovative Enterprises” to be released by the China Enterprise Confederation, private enterprises occupy 12 seats.
Active in emerging industries, the industrial structure of private enterprises continues to optimize——
In April of this year, BYD announced that its all-electric models have begun to switch to “blade batteries” developed by the company. This long and thin power battery has increased its volume utilization rate by more than 50%, and its safety has also been significantly improved.
In the field of new energy vehicles, private enterprises are at the forefront of the industry, whether it is batteries or complete vehicles. Private enterprises are also active in high-end manufacturing, information technology, biomedicine and other strategic emerging industries. In the upcoming “2021 China Top 500 Companies” list, 34 private enterprises in the high-end manufacturing industry will be on the list.
Seizing the opportunities of new business models and new models, the import and export of private enterprises continues to grow——
On July 1st last year, the pilot project of cross-border e-commerce B2B export supervision was implemented, and the “cross-border e-commerce export overseas warehouse” was added. Benefiting from this model, Jiangsu Baoshide Technology (China) Co., Ltd. has seen an upward trend in cross-border e-commerce business in the past year. In August of this year, its annual orders for cross-border e-commerce business were full.
Since the outbreak of the epidemic, global trade methods have changed significantly from offline to online, from “To B” to “To C”. Seizing the opportunities of new forms and models of foreign trade, such as cross-border e-commerce, private enterprises have shown strong vitality with their flexible “positions”.
In the first eight months of this year, private enterprises led various business entities with a 29.9% import and export growth, and became an important source of positive growth in my country’s foreign trade for 15 consecutive months.
It is undeniable that among various factors, the current challenges facing the development of private enterprises are still not small. However, with the firm support of the country and its own unremitting efforts, more and more private enterprises are constantly moving forward in overcoming difficulties.
Adhere to the “two unshakable” no change nor change
Strengthen anti-monopoly and prevent the disorderly expansion of capital, regulate the economic development of the platform, introduce education “double reduction” policies, regulate and regulate off-campus training institutions… Recently, as the regulatory authorities have strengthened regulations on some industries, there have been a few noises that “suppress the private economy” .
Rectifying market order in accordance with the law and promoting fair competition are the manifestations of a mature market economy; creating a fairer education ecology is the meaning of the topic of maintaining social fairness and justice.
Supervision in accordance with the law is aimed at “disorder” and emphasizes “regulation”, and neither is aimed at enterprises with specific ownership. Whether it is from the current or long-term perspective, it is precisely to create a fairer and more optimized development environment for all market players, including private enterprises.
Our country insists on the “two unshakable” and has not changed, and the policy of supporting the development of the private economy has not changed. It has not changed now, and will not change in the future.
On August 30, the 21st meeting of the Central Committee for Comprehensive Deepening Reform deliberated and approved the “Opinions on Strengthening Anti-monopoly and Deepening the Implementation of Fair Competition Policies.”
General Secretary Xi Jinping pointed out that it is necessary to proceed from the strategic height of building a new development pattern, promoting high-quality development, and promoting common prosperity, promote the formation of a fair and competitive market environment, and create a broad development space for various market entities, especially small and medium-sized enterprises. Protect consumer rights.
Fair competition is the basic principle of a market economy. When monopolistic behavior in the market cannot be effectively stopped, monopolistic enterprises often lack the motivation to open up the market, reduce costs, and innovate independently, and small and medium-sized enterprises may also fall into business difficulties as a result.
In 2008, Wu Xianfa, a hardware tool manufacturer in Yiwu, Zhejiang, set a turnover of 500,000 yuan in the first month he opened an online store. “In the first few years of’touching the Internet’, the cost of online sales was significantly lower than offline.” Wu Xianfa said, but as more and more capital entered, the platform became more and more “impatient”.
High “pit fees”, fraudulent traffic, mandatory “choice of two”, high commissions…The leading platform companies squeeze the living space of small and medium-sized enterprises by virtue of their dominant market positions, making the profits of operators such as Wu Xianfa continue to be lost. erosion.
At the same time, excessive discretion in data collection, data leakage risks, monopoly payment channels… Some new problems that have emerged in the rapid development of the platform economy have also brought challenges to regulatory agencies and the public interest.
Strengthening anti-monopoly is to create competitive pressure for monopolistic enterprises and create opportunities for new entrants, especially small and medium-sized enterprises. At the same time, issues such as economic security, financial security, and data security are taken into consideration.
“The Anti-monopoly Guidelines of the Anti-Monopoly Committee of the State Council on the Platform Economy Field” was released, and the National People’s Congress will advance the revision of the anti-monopoly law this year…
Xue Jun, director of the Research Center for E-commerce Law of Peking University, said that strengthening anti-monopoly legislation and enforcement for the platform economy has become a general trend in mature market economies in the world, and it is also an inevitable requirement for my country to accelerate the improvement of the socialist market economic system.
“Among the online platform companies, there are state-owned enterprises, private enterprises, foreign-funded enterprises, and many mixed-ownership enterprises. The policies for rectifying and regulating Internet platforms are treated equally, and they are aimed at violations of laws and regulations, not private enterprises and foreign-funded enterprises. “The Deputy Director of the Office of the Central Finance and Economics Commission in charge of daily work Han Wenxiu said.
Regulating the platform economy is a matter of high-quality development. Creating a healthy and sustainable education ecology is related to the country’s development plan.
Educational equity is the foundation of social equity and the starting point of life equity. However, in recent years, off-campus training institutions that were supposed to be “beneficial supplements” to school education have been over-commercialized under the influence of capital, and have even become “education fair disruptors”. The phenomenon of “burden reduction within schools and burden increase outside schools” is prominent.
On July 24, the “Opinions on Further Reducing the Work Burden of Students in Compulsory Education and the Burden of Off-campus Training” issued by the Central and State Council Offices triggered a profound change in my country’s education ecology.
The German “Süddeutsche Zeitung” commented that China’s “double reduction” policy focuses on long-term well-being. Bloomberg in the United States believes that this reform will fundamentally change the current commercialization trend in the education field.
Returning education to the original aspiration of educating people and creating a clearer education ecology is a necessary move to smooth upward flow channels and create more equitable development conditions.
Obviously, neither regulating the platform economy nor regulating off-campus training institutions is not aimed at the private economy. “Some murmurs on the Internet actually lack a basic understanding of my country’s basic economic system and adherence to the’two unshakable’.” said Liu Shangxi, president of the Chinese Academy of Fiscal Sciences.
In November 2018, General Secretary Xi Jinping pointed out at the private enterprise symposium, “The 19th National Congress of the Communist Party of China has written the’two unshakable’ into the basic strategy for upholding and developing socialism with Chinese characteristics in the new era. The main policy is further determined.” “Supporting the development of private enterprises is the consistent policy of the Party Central Committee, and this will not waver at all.”
The 2021 version of the market access negative list will be revised and issued soon to further relax the market access threshold; formulate opinions on strengthening the implementation of competition policies to promote fairer and orderly market competition; further advancement of mixed ownership reform, property rights protection, and stimulation and protection of entrepreneurship …
Contributing more than 50% of tax revenue, more than 60% of GDP, more than 70% of technological innovation, more than 80% of urban labor employment, more than 90% of the number of enterprises…The private economy has been deeply integrated into the Chinese economy.
In the tide of high-quality development, with the encouragement, support and guidance of the party and the government, the private economy will continue to emerge more “tide-makers”.
The private economy in the new journey can do a lot
“We will continue to support the innovation and development of small and medium-sized enterprises, deepen the reform of the New Third Board, set up the Beijing Stock Exchange, and create a main position for service-oriented innovative small and medium-sized enterprises.”
President Xi Jinping announced on September 2 when he delivered a video speech at the 2021 China International Trade in Services Global Service Trade Summit.
“A tangible policy dividend! The central government’s support for SME innovation is very strong!”
For the person in charge of Beijing Youxuan Software, a high-tech enterprise, this service trade fair has not only won dozens of intentional orders, but also strengthened the confidence of independent innovation to become a strong enterprise.
The vast majority of my country’s small and medium-sized enterprises are private enterprises. The New Third Board relied on by the Beijing Stock Exchange will become an important financing platform for private enterprises, and the reform of the New Third Board is running a new round of “acceleration”.
The central government’s support for the private economy is guided by the “two unwavering” strategy, as well as specific measures such as solving financing problems and reducing the burden of taxes and fees. A series of support policies itself is a major opportunity for the development of private enterprises.
Observing the private economy is the same as observing the entire Chinese economy. It must be placed in the context of starting a new journey of building a socialist modern country in an all-round way.
From “economic and social development with the theme of promoting high-quality development”, “conforming to people’s expectations for high-quality life”, to “accelerating the construction of a new development pattern”, “promoting the common prosperity of all people in a more important position”… There are opportunities for enterprise development.
The key is that private enterprises must be aware of changes, make good use of their advantages, and turn major trends into major opportunities.
Seize the opportunity of technological innovation, give full play to the advantages of private enterprises such as high degree of marketization, efficient decision-making, and powerful incentives, and they can show their talents in the field of “specialization, special innovation”——
“In the ’14th Five-Year Plan’ period, our country must rely on innovation to move forward.”
“It doesn’t matter what your origin is to grasp innovation. As long as you can make a contribution to the country, the country will fully support it.”
In March of this year, General Secretary Xi Jinping’s remarks during an investigation and survey of Fujian Fuguang Co., Ltd. inspired private enterprises that have devoted themselves to innovation.
“Grasping innovation regardless of your origin is a huge encouragement and even a huge opportunity.” said the person in charge of Fuguang Co., Ltd., a privately-owned holding mixed-ownership company.
Grab the nose and break through the “stuck neck”. In the main battlefield of technological innovation, private enterprises are ushering in a period of opportunities for leaping development. With “specialization, special innovation” as the direction, more and more private SMEs have become “single champions” and “hidden champions.”
Seize the diversified demand and consumption upgrade opportunities, give full play to the advantages of private enterprises, such as being close to people’s lives and responsive, and make good use of the vast ocean of the Chinese market——
Cooking robot, “one second price” settlement system… Approaching noon, many elderly people ate in the AI community cafeteria in Hongqiao Street, Shanghai, and a meaty lunch averaged 18 yuan. In the Bingu Building, 5 kilometers away, this group of robotic arms is serving corporate white-collar workers. The average lunch is 20 yuan per serving.
“Whether it is at home or working hard in the workplace, it is necessary to eat fresh and healthy. Rapid iteration is the strength of private enterprises. Transformation of automated catering, refined cost control while ensuring experience upgrades.” said the person in charge of Shanghai catering company “Xixiang”.
A large market with a population of over 1.4 billion, a middle-income group of over 400 million, and a per capita GDP of over US$10,000 is the envy of the world. The consumption structure and industrial structure are continuously upgraded and mutually promoted, and there is huge room for the development of the private economy during the 14th Five-Year Plan.
Seize the opportunity of common prosperity, give full play to the advantages of private enterprises, such as wide tentacles and wide range of benefits, to gain their own development and growth in the benefit of the people——
“Post-90s” Sun Kangjia returned to her home village after retiring from the military and set up a small company to engage in the business of performing costumes and Hanfu e-commerce, which brought more than a dozen folks to join. The joint efforts of the “Sun Kangjia” have made Cao County, Shandong Province, a little unknown, a popular network.
“I think common prosperity is not only to make the enterprise bigger, but also to let the folks have a rush.” Sun Kangjia said.
Chi Fulin, Dean of the China (Hainan) Reform and Development Research Institute, analyzed that common prosperity must first resolve the urban-rural gap. The prosperity of farmers and rural development will give private enterprises huge investment opportunities; the continuous improvement of residents’ social security and education will reduce the number of private enterprises. Worry about the future and provide better support.
The tide of the times is surging, challenges and opportunities coexist, and the key lies in coping with it.
Some private enterprises are engaged in declining industries, some have weaker core competitiveness, and some have lost their own governance…… Transformation is proactive in the early stage, and passive in the late transformation.
Historical opportunities are calling. With the encouragement and support of the party and the government, the private economy embarking on a new journey needs to seize opportunities and cope with challenges, so that the source of innovation can fully flow, market vitality can be fully stimulated, and China’s economy can be strengthened to create an economy and society together. Develop a better tomorrow.
(Reporters Zhao Xiaohui, Liu Zheng, An Bei, Liu Kaixiong, Liu Hui, Zhang Qianqian; Participated in the collection and writing: Sun Fei, Wei Donghua, Wang Moling, Dong Jianguo, Yan Xiangling, Wu Yu)
Source of this article: Xinhua News Agency, original title: “Grasp the general trend of the times and strengthen confidence in development-a review of current private economic development”
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