Group to help pri­vate firms ac­cess fi­nanc­ing

China Daily (Latin America Weekly) - - Front Page - By CHENG YU and MA SI in Bei­jing and ZHOU WENTING in Shang­hai

The All-China Fed­er­a­tion of In­dus­try and Com­merce will beef up ef­forts to help pri­vate busi­nesses ad­dress fi­nanc­ing dif­fi­cul­ties as part of a broader push to as­sist them in pur­su­ing high-qual­ity de­vel­op­ment, its top of­fi­cial said on Satur­day.

Xu Le­jiang, sec­re­tary of the Lead­ing Party Mem­bers’ Group of the fed­er­a­tion, said that more work will be done to pro­mote com­mu­ni­ca­tion be­tween pri­vate en­ter­prises and fi­nan­cial in­sti­tu­tions.

“We are also con­duct­ing a third-party eval­u­a­tion on the im­ple­men­ta­tion of poli­cies to make fi­nanc­ing more ac­ces­si­ble and af­ford­able for mi­cro and small com­pa­nies.”

As a bridge to con­nect the gov­ern­ment with non­pub­lic en­ter­prises, the fed­er­a­tion will take in­no­va­tive mea­sures to bet­ter serve pri­vate busi­nesses, pro­tect en­trepreneurs’ rights and in­ter­ests, and create a sound en­vi­ron­ment, he added.

The re­marks came af­ter Pres­i­dent Xi Jin­ping, also gen­eral sec­re­tary of the Com­mu­nist Party of China Cen­tral Com­mit­tee, vowed in a sym­po­sium to unswerv­ingly en­cour­age, sup­port and guide the de­vel­op­ment of the non­pub­lic sec­tor, and en­cour­age pri­vate en­ter­prises to de­velop more broadly.

The lat­est sym­po­sium is a “mile­stone” and “com­pass”, Xu said, which pointed out a di­rec­tion for the fu­ture de­vel­op­ment of the pri­vate sec­tor.

The sym­po­sium has in­tro­duced six mea­sures, such as eas­ing com­pa­nies’ tax bur­den, re­solv­ing pri­vate com­pa­nies’ dif­fi­cul­ties in bor­row­ing money, build­ing a fairer en­vi­ron­ment for com­pe­ti­tion, and pro­tect­ing the safety and as­sets of pri­vate en­ter­prises.

“These six mea­sures are not only key to tack­ling the cur­rent bot­tle­necks of pri­vate busi­nesses, but are also crit­i­cal to help lead pri­vate firms to­ward high-qual­ity de­vel­op­ment,” Xu said.

In line with the coun­try’s call to de­velop the pri­vate econ­omy, the Shang­hai gov­ern­ment will make avail­able 30 bil­lion yuan ($4.35 bil­lion) to re­lieve the fi­nanc­ing dif­fi­cul­ties of lo­cal small and medium-sized pri­vate en­ter­prises, ac­cord­ing to a doc­u­ment the mu­nic­i­pal­ity re­leased late Satur­day.

A bailout fund of 10 bil­lion yuan will be es­tab­lished for listed pri­vately owned en­ter­prises, es­pe­cially those that are in line with the op­ti­miza­tion and up­grad­ing of the eco­nomic struc­ture and with good prospects in terms of mar­ket ori­en­ta­tion and ad­her­ence to laws.

An­other 10 bil­lion yuan will be used to pro­vide credit loans and se­cured loans for pri­vate small and medium- sized en­ter­prises with good mar­ket per­for­mance while 10 bil­lion yuan in ad­di­tional funds will be used for fi­nanc­ing guar­an­tee funds for SMEs, and risk tol­er­ance will be widened.

Over the past 40 years, the pri­vate econ­omy has be­come an in­dis­pens­able force be­hind the coun­try’s de­vel­op­ment.

The pri­vate econ­omy con­trib­utes to more than 50 per­cent of tax rev­enue, 60 per­cent of GDP, 70 per­cent of tech­no­log­i­cal in­no­va­tion, 80 per­cent of ur­ban em­ploy­ment and 90 per­cent of new jobs and new firms.

Liu Jiren, chair­man of Chi­nese soft­ware gi­ant Neu­soft Corp, said that he was en­cour­aged by the top lead­er­ship’s call to sup­port pri­vate firms.

“It made us feel that the na­tion and pri­vate busi­nesses have a com­mon goal and we are a com­mu­nity with shared in­ter­ests,” he said.

“As an in­no­va­tive pri­vate com­pany, we will con­tinue to bol­ster our in­no­va­tion ca­pa­bil­i­ties and core com­pet­i­tive­ness to be glob­ally com­pet­i­tive.”

Lei Jun, founder and CEO of smart­phone maker Xiaomi, noted that the gov­ern­ment has been striv­ing to cut taxes and fees for non­pub­lic en­ter­prises. Such a sound en­vi­ron­ment in­spires en­trepreneurs to fo­cus on in­no­va­tion.

“I am full of en­thu­si­asm and con­fi­dent in the fu­ture de­vel­op­ment of the pri­vate sec­tor,” he added.

Con­tact the writ­ers at chengyu@ chi­


Dyala Jimenez Figueres, Costa Rica’s min­is­ter of for­eign trade, takes a photo at Shang­hai In­ter­na­tional Con­ven­tion Cen­ter on Sun­day with other guests in­vited to the China In­ter­na­tional Im­port Expo.

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