Innovation to bolster private enterprises

Highlighting the role of innovation as a catalyst for the advancement of the private economy, national political advisers have suggested that entrepreneurs actively integrate technology to drive cost efficiencies and operational enhancements, while also seeking out new avenues for growth.

Additionally, favorable government policies are emphasized to streamline loan processes, addressing the challenges of costly and difficult financing for small and micro-sized private enterprises, they said on Thursday.

The remarks followed the focal points outlined in the Government Work Report, emphasizing the effective execution of policies and measures to foster the growth of the private sector, better safeguarding the legitimate rights and interests of private enterprises and entrepreneurs in compliance with the law.

The report also advocates for qualified private enterprises to establish a robust modern corporate framework infused with Chinese characteristics. Furthermore, it advocates dealing with hyper-competition and the enhancement of market access environments in emerging sectors, marking it as a pivotal objective in the government's agenda for 2025.

Shen Danyang, the head of the report drafting group and director of the Research Office of the State Council, elaborated on the government's commitment to bolstering the private sector post-report release, saying, "The government will persist in refining a fair competitive market landscape, reducing burdens, enabling companies to compete unhindered and resolving payments owed to enterprises, with methods including the issuance of special bonds by local governments to settle debts, thereby ensuring sustained financial backing for small and micro-sized private enterprises."

As per data from the State Administration for Market Regulation, by the end of January the number of private enterprises in China had surged to 56.7 million, which is 5.2 times of that in 2012.

Ma Jiantang, a member of the 14th National Committee of the Chinese People's Political Consultative Conference, urged for further efforts in addressing the hurdles of arduous and costly financing for private enterprises, emphasizing the need to support private companies in reclaiming debts as failure to do so could impede the cash flow of private enterprises.

"We eagerly anticipate the upcoming law to protect private economy, which will ensure the effective implementation of the array of policies and measures through legal norms, ensuring fair market competition in terms of resource allocation, financial support and legal protection," said Liu Yonghao, a CPPCC National Committee member.

Liu, who also serves as the head of the agricultural and animal husbandry enterprise New Hope Group, added that "industries such as meat, eggs, dairy and clothing have reached saturation levels in China. In this evolving landscape, competition is intense, particularly in traditional industries where the emphasis should be on avoiding hyper-competition that centered on price competition over quality, functionality, and branding."

He called for more efforts on product innovation, design and marketing.