Expo lifts morale in private firms

More concrete measures needed to support entrepreneurs

The confidence of some Chinese private entrepreneurs have been boosted at the first-ever China International Import Expo (CIIE), as the central government vowed to take concrete steps to create a fair business environment for private and State-owned enterprises.

A recent meeting between China’s top leadership and some private companies eased concerns in the private sector, said Guo Guangchang, chairman of Fosun International Ltd, the Shanghai-based private conglomerate. “It helped to strengthen our confidence in the future development,” Guo was quoted as saying in a statement sent to the Global Times on Friday.

China’s top leadership vowed to further support private companies and pledged to create a fair business environment for private companies, for example, some hidden restrictions and hindrances should be removed.

The message was sent out following the country’s growing downward pressure amid the China-US trade war. Countless small- and mediumsized enterprises across the country have been coping with internal and external pressure.

However, the CIIE, a platform which brought together more than 3,000 companies from over 130 countries and regions, provided great opportunities for private companies, some of them signing multimillion-dollar deals in the six-day event.

For instance, 11 Fosun-invested companies and its business partners in the overseas healthcare sector showcased leading health technology and products at the CIIE, including the CAR-T cell therapy treatment, the Da Vinci surgical robot systems, among others.

Over 40 hospitals will purchase the Da Vinci surgical robot systems across China worth over $133 million, Fosun said.

CIIE not only provides opportunities for private businesses to cooperate with more foreign companies, but also gives a chance to firms to go overseas, said a buyer group representative who requested anonymity from East China’s Zhejiang Province.

Private companies have played an important role in China’s economic growth. Private firms contributed more than half of China’s tax revenue, 60 percent to the GDP, 70 percent of technological innovation and new products and 90 percent of new jobs, Xinhua News Agency reported.

“Considering the important role that Chinese private firms play in GDP growth, it’s not unusual that Chinese private companies were enthusiastic at the expo,” said Feng Liguo, a research fellow at China Min sheng Bank’s research center.

To strengthen confidence in private entrepreneurs, local governments and authorities should take more concrete steps to support private firms, such as reducing taxes and facilitating loans, the expert noted.

To avoid an empty promise, the State Council also released a document on Thursday focusing on improving the business environment, urging policies to be accurately carried out to ease enterprises’ burden.

Fairness is among the list of priorities. A revised negative list must be completed and implemented by the end of 2018, which will lower the market threshold for social capital in civil aviation, railroads and other areas.

Instead of waiting for the government to support a company’s future growth, private companies should strive to invest in key areas and allocate resources more effectively, which is also a lesson learned at the CIIE, experts said.

“Private enterprises should also increase their investment in scientific research. At the same time, they should raise their sights and integrate resources globally,” Guo noted.