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Xi's measures bolstering confidence

By Ma Si, Cheng Yu and Liu Yukun | China Daily | Updated: 2018-11-03 16:37
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President Xi Jinping greets entrepreneurs, mostly from small and medium-sized companies, at a symposium in the Great Hall of the People in Beijing on Thursday. [Photo/Xinhua]

Private entrepreneurs bullish on the call to step up innovation efforts

Top entrepreneurs from China have responded positively to President Xi Jinping's emphasis on providing more support to private enterprises, and said they will step up efforts to boost innovation and take the initiative to shore up economic growth.

Lu Weiding, CEO of Wanxiang Group, a multibillion dollar automotive group, said he was reassured by President Xi's speech about more support to private firms. "The top leadership gave an enlightening prescription to the difficulties we are facing. As representatives of the new generation of entrepreneurs, we will strengthen our innovation capabilities and core competitiveness to be stronger, and hope to gain a lead in global competition," Lu said.

The comments came after Xi, also general secretary of the Communist Party of China Central Committee, said the private economy is an essential element of China's economic system, and that "private enterprises and private entrepreneurs belong to our own family".

Xi introduced six measures, including easing companies 'tax burden, resolving private companies' difficulties in borrowing money, building a fairer environment for competition, and protecting the safety of private enterprises and their wealth.

Lei Jun, founder and CEO of smartphone maker Xiaomi Corp, said he was inspired by Xi's speech, which gave important directions for the development of private businesses.

"I am full of enthusiasm and confident in the future development of the private economy," Lei said.

According to Lei, the government has been striving to cut taxes and fees, and to reduce bank loan interest rates for non-public enterprises. Such a sound environment inspires entrepreneurs to focus on innovation.

"The purpose of private entrepreneurs to do business is not for personal interests. The value private businesses create belongs to the whole of society, including employees as well as consumers. Therefore, entrepreneurs must have a clear sense of mission to contribute to social progress," Lei said.

Over the past 40 years, the private economy has become an indispensable force behind China's development, by being the major contributor to job creation, technological innovation and an important source of 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, according to Feng Liguo, a researcher at the China Minsheng Bank Research Institute.

Zhang Xin, chairman of TBEA Co Ltd, a major energy equipment maker in China, said Xi's speech has boosted the company's confidence in promoting high-quality development and strengthening its overseas cooperation. The company currently has cooperation projects in India, Kyrgyzstan and several other countries.

"Tackling technical issues and raising more funding are major challenges for small and medium-sized enterprises. We will offer more technical and financial support to help tide them over the temporary hardships," Zhang said.

According to him, assurances from the top leadership have made the company more aware of the importance of poverty alleviation. It will offer more educational resources and create more job opportunities to residents in Xinjiang, he said.

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