Shanghai government enhances support for private enterprises

The Shanghai municipal government announced 27 concrete measures to comprehensively enhance the vitality of the private economy on the eve of the China International Import Expo (CIIE), a move that experts said is in line with the central government’s support for private enterprises and will provide more space for such companies.

As the host of the CIIE, Shanghai has promised to improve the business environment for private enterprises and foreign companies by offering tax breaks, cutting land use costs for enterprises, and lowering administrative and component costs.

To relieve private companies’ difficulty in obtaining affordable financing, Shanghai will set up a 3o billion yuan ($ 4.36 billion) special fund, according to the measures.

The measures also include cultivating leading enterprises in industries, supporting enterpris-es' technical transformation and independent innovation; boost-ing corporate talent introduction, and supporting enterprises in their move to expand domestic and foreign markets.

Shanghai's concrete measures to vigorously promote the healthy development of the private econ-omy came after the Political Bu-reau of the Communist Party of China (CPC) Central Committee on Wednesday vowed to address difficulties plaguing private busi-nesses during a meeting to ana-lyze the economy and plan the country's economic work.

“As a local government, Shanghai is moving fast to implement support for the private sector,” said Feng Liguo, a research fellow at China Minsheng Bank’s research center.

Tian Yun, vice president of the Beijing Economic Operation Association, also noted that Shanghai is moving fast following top leadership’s urge to back up the development of private economy.

“It’s fast. The city mentioned it aims to solve the difficulty in obtaining financing and protecting private enterprises’ lawful rights. It’s critical,” said Tian.

Coming right before the opening of the CIIE, China’s first-ever import expo, which kicks off on Monday, the measures are also intended to showcase the city’s and the country’s broader efforts to create a better environment for not only private companies in China but also foreign ventures, experts noted.