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Entrepreneurs bullish on private sector

Cheng Yu
Updated: Nov 22,2018 9:35 AM     China Daily

Top entrepreneurs from China are bullish on the future of private businesses with the country’s reform and opening-up, and said they will further boost innovation to enhance economic growth.

Liu Yonghao, chairman of leading agribusiness company New Hope Group, noted that reform and opening-up has offered “fertile soil” for private companies to grow while the country’s call to support private businesses “dispersed the mist” for the private entrepreneurs.

“Private entrepreneurs indeed had some doubts and concerns, but they felt assured when China’s top leadership delivered several important speeches within a month,” Liu said at a news conference held by the State Council Information Office on Nov 21.

“We are determined to increase investments in both technology and consumption upgrading to bolster our competitiveness,” he said.

The remarks came after President Xi Jinping, also general secretary of the Communist Party of China Central Committee, called at a symposium earlier this month to unswervingly encourage, support and guide the development of the nonpublic sector, and encourage private enterprises to develop toward a broader stage.

“The latest symposium is a ‘watershed’, which offers a broader scope for the future development of the private sector,” said Zhou Haijiang, board chairman and CEO of Hodo Group, a leading private company in knitted underwear and garments.

Over the past 40 years, the private economy has become an indispensable force driving China’s development, being a major contributor to employment creation, technological innovation and tax revenue.

On top of accounting for more than half of the country’s fiscal revenue, China’s private enterprises are currently responsible for over 60 percent of fixed-asset investment, more than 70 percent of innovation and over 80 percent of urban employment.

“Private companies are an important driver in that they have a flexible working mechanism and can respond quickly in areas that face fierce competition,” said Nan Cunhui, chairman and founder of Chint Group, a leading industrial electrical company.

According to Nan, the authorities have been striving to cut taxes and fees, and to reduce bank loan interest rates for nonpublic enterprises. Such a sound environment encourages entrepreneurs to grow stronger.

Lei Jun, founder and CEO of Chinese smartphone maker Xiaomi Corp, said at the conference that he is confident about future growth with the deepening of reform and opening-up.

Citing that Xiaomi’s international revenue jumped 112.7 percent year-on-year and accounted for 43.9 percent of the total revenue in the third quarter of this year, Lei noted that private internet companies like Xiaomi had gained momentum in going global.

“Chinese brands will step further onto the global stage with their products, technology, management and investment, which will bring benefits to people across the world,” he said.

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