In 2019, promoting the healthy development of the private economy has always been a major issue on the government’s mind. Towards the end of the year, decision-makers once again encouraged the development of private enterprises. On December 22, the “Opinions of the Central Committee of the Communist Party of China and the State Council on Creating a Better Development Environment to Support the Reform and Development of Private Enterprises” (hereinafter referred to as the “Opinions”, the full text is attached) was released to the public. The 28 measures were repeatedly studied by entrepreneurs. The bottom is over,” many entrepreneurs said in interviews with reporters.
In the development and improvement process of my country’s market economy Among them, private enterprises account for more than 90% of market entities, and their contribution rate to economic growth, employment rate and innovation is more than 80%, and they are an indispensable force in promoting the development of our country. However, for a long time, various tangible and intangible barriers to entry have remained an important constraint on the development of private enterprises.
Qi Yudong, Dean of the School of Economics and Business Administration of Beijing Normal University, pointed out that in recent years, the Central Committee of the Communist Party of China and the State Council have always emphasized the decisive role of the market and the fundamental role of competition to create a market with fair competition. The environment, policy environment, and legal environment ensure that all types of market entities have equal rights, equal opportunities, and equal rules. However, in reality, due to the constraints of specific institutional mechanisms and various interest barriers, these very good “top-level designs” are still difficult to implement in actual implementation, and various “moderate obstruction” phenomena still exist in various localities and departments. As a result, private enterprises still face various problems in the development process.
“In this context, the issuance of the “Opinions” is of great significance. The document focuses on problem-oriented and goal-oriented, and is very normative and operational.” Wu, deputy director of the Capital Finance Research Institute of China University of Political Science and Law Changhai said that the “Opinions” are not simple policy support, but the further opening and development of the market economy. “If these regulations are implemented in place, it can be said to be the most direct dividend for the development of private enterprises.”
Fairness is the best business environment for private enterprises
Zhao Linzhong, chairman of the board of directors of Furun Holdings Group Co., Ltd., said the “Opinions” In order to protect the property of private enterprises, private entrepreneurs and private entrepreneurs, it is the “fixing needle”. In his opinion, all 28 articles in the “Opinions” are filled with the word “fairness”.
What private entrepreneurs fear most is “discrimination”. There have always been some voices in the market that are not conducive to the development of private enterprises. Since the 18th National Congress of the Communist Party of China, General Secretary Xi Jinping has repeatedly reiterated his adherence to the basic economic system and the “two unwavering principles.” Provide “reassurance” to private entrepreneurs. Zhao Linzhong told reporters that the general secretary’s speech inspired the confidence of entrepreneurs, and government departments at all levels have successively introduced many policies to support the development of private enterprises. But at the same time, private enterprises still face the “three mountains” – the iceberg of the market, the volcano of transformation, and the mountain of financing.
He gave an example. Not long ago, a private entrepreneur applied for a loan from a commercial bank, and the bank asked the entrepreneur for the legal representative of the company. A series of documents such as identity certificates, household registration certificates, marriage certificates, real estate certificates, and credit certificates for persons and spouses are complicated procedures, and the review is much stricter than that of state-owned enterprises. “Isn’t this a kind of discrimination?”
This situation exists in all aspects of the operation and development of private enterprises. Wu Changhai said that during their research, they found that private enterprises faced certain discriminatory views and practices in terms of tax burden, financing costs, entrepreneurs’ property, and bidding and bidding. “These discriminatory practices have caused instability in the hearts of the people (private entrepreneurs) and weak backbones, affecting the long-term business plans and strategies of private enterprises, and affecting the growth and development of private enterprises.”
According to According to statistics, the average life span of Japanese SMEs is 12 years, while the average life span of my country’s SMEs is about 3 years. During the economic downturn, it is only about 2.5 years. Various reasons have caused the operating difficulties of private enterprises in our country, and their life span has also been affected.
The “Opinions” place “fairness” in an extremely important position, with a total of 9 mentions in the entire article. The “Opinions” point out that we must “adhere to fair competition, treat all types of market entities equally, create a market environment, policy environment, and legal environment for fair competition, and ensure equal rights, equal opportunities, and equal rules” and “implement a fair and unified market supervision system.” “Strengthen the rigid constraints of the fair competition review system” and “improve the equal protection mechanism of law enforcement and justice for private enterprises”, etc. The “Opinions” will deepen “delegation, regulation and services”, relax market access, and unify and fair supervision as breakthrough points for optimizing the market environment.
It is worth noting the government’s efforts in liberalizing market access for private enterprises. The “Opinions” confirm that competitive businesses will be liberalized in key industries and fields such as electricity, telecommunications, railways, oil, and natural gas, and market competition mechanisms will be further introduced. “This reform is very powerful. If it can be implemented without compromise, it can directly eliminate the problem of ‘unfair starting point’ among enterprises and stimulate market vitality.” Associate researcher at the Institute of Financial Strategy, Chinese Academy of Social Sciences, and deputy director of the Finance and Taxation Research Center �culture, promote the healthy development of enterprises, etc., give full play to the battle fortress role of party organizations and the vanguard and exemplary role of party members, and strive to improve the quality of party organizations and work coverage in private enterprises.
(27) Improve the working mechanism to support the reform and development of private enterprises. Establish a leadership and coordination mechanism to support the reform and development of private enterprises. Incorporate indicators related to supporting the development of private enterprises into the high-quality development performance evaluation system. Strengthen statistical monitoring and analysis of the private economy. Carry out policy training for private entrepreneurs.
(28) Improve the working mechanism for public opinion guidance and demonstration and leadership. Strengthen the guidance of public opinion, take the initiative to tell the stories of private enterprises and entrepreneurs, resolutely resist, promptly refute and clarify erroneous remarks that question the basic socialist economic system and deny the private economy. In various selection and commendation activities, outstanding private enterprises and entrepreneurs will be treated equally. Research and support the reform and development of benchmark private enterprises and private economic demonstration cities, and give full play to the role of demonstration and leadership.
All regions and departments must fully understand the importance of creating a better development environment to support the reform and development of private enterprises, and effectively unify thoughts and actions to the Party Central Committee , the State Council’s decision-making and deployment, strengthen organizational leadership, improve working mechanisms, formulate specific measures, and conscientiously implement these opinions. The National Development and Reform Commission shall work with relevant departments to evaluate the implementation of policies to support the reform and development of private enterprises in a timely manner, and report major situations to the Party Central Committee and the State Council in a timely manner. </p
