Zhejiang businesses get a push with reduced costs

Privately owned enterprises in Zhejiang province have been injected with vitality as the government has adopted policies to reduce their burden in recent years.

Hangzhou Wahaha Group, the largest beverage producer in China, has largely benefitted from the government’s

Privately owned enterprises policies to reduce tax and service in Zhejiang province have fees, said Zong Qinghou, been injected with vitality as the group’s founder and the government has adopted chairman. policies to reduce their burden

As Wahaha has calculated, in recent years. the total fees it paid in Zhejiang

Hangzhou Wahaha Group, in 2017 significantly the largest beverage producer dropped by 64 percent from a in China, has largely benefitted year earlier to 13 million yuan from the government’s ($2.1 million). The items of policies to reduce tax and these fees were also reduced service fees, said Zong Qinghou, to 152 from 172 in 2016. the group’s founder and

The group has also seen its chairman. costs largely reduced by the

As Wahaha has calculated, favorable electricity price the total fees it paid in Zhejiang offered by the Zhejiang government in 2017 significantly in recent years. dropped by 64 percent from a With the policy, Wahaha year earlier to 13 million yuan saved 4.9 million yuan of ($2.1 million). The items of electricity costs in 2016 and these fees were also reduced the figure reached 5.3 million to 152 from 172 in 2016. yuan last year, said Zong. The group has also seen its “The government’s effort cost largely reduced by the to reduce companies’ burden favorable electricity price has also been shown by its offered by the Zhejiang government improved efficiency,” said in recent years. With Zong. the policy, Wahaha saved 4.9

“While we had to finish million yuan of electricity some of the business procedures cost in in 2016 city and government the figure reached departments 5.3 million in the yuan past, last we year, can do said it Zong. at the district level now. “The If some government’s required effort documents of releasing have not companies’ been submitGeneral burden has also been shown on its improved efficiency,” said Zong.

“While we had to finish some of the business procedures in city government departments in the past, we can do it at the district level now. If some required documents have not been submitHteadn iYnamtiminge, as we submit them later. Some of the procedures can even be completed on the smartphone ted in time, the government application now,” he said. can still handle the case as

According to Zong, Zhejiang, long as we submit them later. which has a large number Some of the procedures can of privately owned enterprises, even be completed on the has been dedicated in building smartphone application it into the lowest-cost province now,” he said. nationwide, in order to provide

According to Zong, Zhejiang, a better commercial environment which has a large number for companies. of privately owned

“The company now can enterprises, has been dedicated carry on all its strategic development to building it into the plans with much confidence,” lowest-cost province nationwide, he said. in order to provide a

Ningbo Heng Sheng Logistics better commercial environment Co Ltd was listed on the for companies. National Equities Exchange

“The company now can and Quotations in May 2016. carry on all its strategic

As the company’s deputy development plans with general manager Chen Kai much confidence,” he said. explained, petrol and highway

Ningbo Heng Sheng Logistics tolls make up the majority — Co Ltd was listed on the 60 percent — of the company’s National Equities Exchange costs. and Quotations in May 2016.

As Zhejiang lowered the toll Manager Chen Kai explained, petrol and highway tolls make up the majority — 60 percent — of the company’s costs.

As Zhejiang lowered the toll fees for international standard container vehicles in March last year, the company fees for international standard has seen the cost for container vehicles in March such vehicles reduced by 10 last year, the company has percent year-on-year, which seen the cost for such vehicles is quite important for a public reduced by 10 percent year-onyear, company. which is quite important

“This is also good news for for a public company. companies which purchase

“This is also good news for delivery services from us,” he companies which purchase said. “We will lower the delivery services from us,” he charge by 8 percent after the said. “We will lower the charge new policy. In this sense, by 8 percent after the new policy. companies throughout the In this sense, companies value chain will all benefit throughout the value chain from the policy.” will all benefit from the policy.” Since 2013, Zhejiang has Since 2013, Zhejiang has abolished, suspended, abolished, suspended, exempted exempted or integrated a and integrated a total of 134 total of 134 kinds of administrative kinds of administrative business business charges. An charges. An additional additional 25 such charges 25 kinds of such charges have have been lowered. As a seen their prices lowered. As result, the local government a result, the local government has reduced a total of 48 billion has reduced a total of 48 billion yuan worth of charges yuan worth of charges from from companies. companies. “Zhejiang is not abundant “Zhejiang is not abundant in natural resources and faces in natural resources and faces a number of challenges such a number of challenges such as the rising labor cost and as the rising labor cost and land prices,” said Han Yaming, land prices,” said Han Yaming, deputy director of Zhejiang deputy director of Zhejiang Provincial Price Bureau. Provincial Price Bureau. “We “We have made all efforts to have made all efforts to release release the burden from companies the burden from companies so so that they can be better that they can be better motivated motivated and seek the and seek the room for room for development.” development.”

We have made all efforts to release the burden from companies so that they can be better motivated and seek the room for development.” dtehpeugtyodvierernctmoreonft ZcahnejsiatnilglhParnovdilnectiahlePcraicse Basulroenaug