China’s private enterprises far from big enough

Some Chinese entrepreneurs say that private enterprises in China should abstain from developing into giant corporations so as not to attract too much attention. Columnist Qin Shuo comments in a recent post on his WeChat account:

How do we view the size of private enterprises? What are the expectations for them? What conditions are created for them? This is not only about their destiny, but also about our destiny.

In the new era of high-quality development, the role of private enterprises should be growing. At the same time, their role should be centered on value creation.

As long as the entrepreneurs focus on innovation, sustainability and risk control, the size of their businesses should not be questioned. The difficulties some private companies face in the current global economic climate does not mean there is no space for the development of private enterprises. The government’s deleveraging is to reduce financial risks not to suppress private enterprises. Indeed the authorities have left almost no stone unturned when it comes to improving the business environment for them.

Given its resolve to deepen reform and expand opening-up, China’s business environment will only become more fair and impartial. For the private enterprises that insist on productive innovation, technological innovation and value creation, their future development space is very large.

Moreover, the consumption power of the Chinese people will be released in the process, creating even more opportunities for private enterprises.

If thousands of Chinese companies choose different ways to create real value for society, then the Chinese economy will surely step out of the path of traditional growth mode and usher in a bright future.