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Mass entrepreneurship and innovation showing initial impact

Updated: Nov 30,2015 6:46 PM

Mass entrepreneurship and innovation, which is the engine driving China’s economy amid tough downward economic pressures, leads to signs of economic improvement.

After a series of supporting policies and measures on mass entrepreneurship and innovation in the past few months, efforts are paying off as statistics showed increases in newly registered companies and patents, strategic emerging industries, and jobs.

During the past nine months, the number of newly registered companies grew to 10.6 million and registered capital reached 20.7 trillion yuan ($3.24 trillion), a 15.8 percent and 40.9 percent growth year on year, respectively, while the number of patent applications rose to 1.87 million, a 22 percent growth.

Accordingly, strategic emerging industries witnessed stable growth, accounting for 1.4 percent of GDP growth in the first eight months, and fixed asset investments in 10 key areas saw a 16.6 percent rise year on year.

During the 12th Five-Year Plan, average annual growth in seven strategic emerging industries, including new-generation information technology, biology, energy conservation and environmental protection, new energy, new material technology, high-end equipment, and new energy vehicles, is almost double the GDP growth.

It is estimated that the added value of strategic emerging industries will account for 8 percent of GDP by the end of 2015.

According to an official from the National Development and Reform Commission, China is at a crucial stage of transformation, where emerging industries will take up traditional industries as the driving force to improve the economy.

Development of emerging industries and mass entrepreneurship and innovation will be the pillar to maintain stable economic growth, the official said.

As for employment, this year’s target was met ahead of time as 10.6 million jobs were added in the first three quarters. In addition, more migrant workers are returning home to set up businesses in the countryside, which will result in increases in farmers’ income.

Mass entrepreneurship and innovation also drives industrial restructuring as new technologies, such as data computing, big data, industrial Internet, and 3D printing, are used to transform traditional industries, enhancing the country’s manufacturing ability.

In addition, mass entrepreneurship and innovation drives the ongoing reform aimed at bringing convenience to businesses and energizing the market.

So far, the State Council and its departments have canceled or delegated 537 administrative approvals, two years ahead of government’s planned deadline to cut one-third of administrative approvals.

Investment approvals concerning the central government were reduced 76 percent, and all overseas investment approvals, except in special circumstances, were abolished.

Industrial and commercial registration was reformed as 85 percent of approval items were simplified, and people can now get a business license before going through administrative approvals.