Private firms urged to update
Private entrepreneurs in Fujian province must update their business and manufacturing practices if they want to move up the industry chain, officials said.
Family-owned businesses, which account for most of the private enterprises in the province, have been facing problems lately due to their insistence on a family-driven business development, rather than economic transition and upgrading.
Private enterprises account for 1 million of the total of 1.13 million units in Zhangzhou and generate roughly two-thirds of the industrial GDP in Quanzhou in Fujian province.
“Enterprises have benefited from having a global business approach, introducing top talent, developing new products and using diversified capital investment resources,” said Liu Yuan, mayor of Zhangzhou.
Liu said by using traditional approaches helped entrepreneurs when the market focus
Property rights protection mechanism needs improvement
Protection of property rights is crucial to encourage and stimulate the private sector, said experts, after the nation’s annual legislative session spotlighted the subject.
“Improving the property rights protection mechanism is key to supporting the private sector,” said Liu Xiangdong, a researcher at the China Center for International Economic Exchanges. “There is a need to build a clean and transparent relationship between the government and the private sector to ensure property rights are not violated.”
“The private sector has contributed nearly half the was quantity rather than quality. “But such an approach saw them lose their competitiveness amid economic globalization,” he said.
Liu said that many private businesses, especially those in traditional industries, such as food processing, clothing manufacture and daily necessities are being handed over to successors from the second or third generation.
“Therefore it is the perfect time for the businesses to introduce modern theories and systems of management to achieve high-quality development,” Liu said.
He said private enterprises such as Datong, a high-tech enterprise specializing in manufacture of valves, has benefited from its extended focus into research and development and talent cultivation. Such experiences are worth learning and emulating, he said.
Kang Tao, mayor of Quanzhou city, said city officials and local entrepreneurs would put more efforts to drive enterprise country’s tax income and 90 percent of new urban employment,” Premier Li Keqiang said after the conclusion of the first session of the 13th National People’s Congress. To instill confidence in all property owners, Li said the nation will press ahead to reassure the legitimate property rights of all types of ownership.
The reduction in tax, support for financing and protection of intellectual property are also crucial in encouraging innovation and entrepreneurship in the private sector, said Liu.
“IP is of huge significance to business,” said Wen Shenda, public relations manager of NetEase transition and upgrading.
“Senior managers at Quanzhou-based Heng’an Group, one of the country’s leading producers of tissue paper and sanitary napkins, have since last year been holding regular classes for managers from other companies,” said Kang.
“Senior managers at K-boxing, a men’s apparel producer from Jinjiang, has also been offered regular classes on modern business practices to secondgeneration successors of some private businesses,” he said.
The officials also encouraged businesses to equip themselves with developments in the high-tech sector to further rejuvenate the traditional industries.
Kang said Guirenniao, a Jinjiang-based apparel maker, has started to make sports shoes weighing only 120 grams, the equivalent weight of a packet of instant noodles, by adopting modern technologies and using a newly-developed form of carbon called graphene two years back. Yunxin, a communication service provider.
“Especially for technology companies like us doing cloud computing, our top business confidentiality is software coding. If it were not for the protection of IP, our products could have been easily duplicated and stolen.
“Take the technology of livestreaming chatrooms for example, Yunxin has registered a national patent of making online chatrooms open for an indefinite number of users at a time,” Wen said. “Only with IP being protected could Yunxin secure a large market share in this field.”