Anta Chairman Ding Shizhong: Traditional Smes Need "Craftsman Spirit"

Representatives of the NPC and CPPCC National People's Congress of the Fujian delegation attending the two sessions.

Ding Shizhong, chairman of the board of directors, praised the two news points in his own circle of friends: one is Xi Jinping reaffirming the "three changes" in the development of the non-public sector of the economy, and defines the relationship between government and business as "pro" and "Qing"; the other is Li Keqiang in the government work report that "reducing taxes and reducing fees and further reducing the burden on enterprises".

Ding Shizhong said in an interview with reporters that there are many opportunities for the current Internet entrepreneurship, but if the real economy is not good, the Internet can only be empty.

He believes that the traditional SMEs need to find a way out in the tide of collapse.

"Focus on a more precise market.

Traditional SMEs need "craftsman spirit"

Reporter: there are many in Fujian.

What is the main reason for the collapse?

Ding Shizhong: there are two aspects of the failure of traditional industries in private enterprises.

The first is that their core competitiveness is not enough -- whether there is a patent, which technical content or scientific research results are unique, these are core competitiveness.

The second is international competition.

Because many of these small and medium-sized private enterprises are engaged in export processing for foreign brands, but with the rise of labor costs, there is a gap between labor costs and Southeast Asia, and Southeast Asian exports to many developed countries are exempt from customs duties. Many large brands and international brands have shifted their orders to Southeast Asia.

In the past, Nike's orders in China accounted for 60% of the world's total, now only 30%, and will continue to decline.

This involves many middle and upper reaches, upstream and downstream SMEs.

Reporter: some people say that many private businesses are down because banks do not lend money to them. If they can lend, they will live.

Ding Shizhong: I think it's not a simple bank policy issue.

In the past, the policy of banks was relatively loose, and it was easy for enterprises to borrow a lot of money, but the enterprises had sufficient funds and the real development ability did not match.

It seems that the car originally opened 120 miles, suddenly opened to 180 miles, and the brakes were too late. Now the banks are too late to brake.

Reporter: is the traditional small and medium-sized enterprises impossible?

Ding Shizhong: I feel that if there is a way for small and medium-sized enterprises to reflect the "craftsman spirit" of the prime minister in some products, it will be good.

In the past, some small and medium-sized enterprises had to make production, make brands and do retail business. Where did he have such competitiveness? If he could concentrate on a small product and make a small product better and bigger, he might still be competitive.

After all, China has a market of 1 billion 300 million people. It is very large. If the division of labor is more accurate and the location is more accurate in the future, I think we can still find a way out.

Reporter: do you know that there are such enterprises now?

Ding Shizhong: there were several small and medium-sized enterprises that we used to cooperate with. In the past, they wanted to do both production and brand, and they lost a lot of money.

And he did basketball shoes and football shoes. Now he makes football shoes.

Moreover, he did not make the brand, only to do a certain brand of a category of processing, the product is very dedicated, very professional.

We now have several matching enterprises, all of them have been relocating themselves and doing well.

Internet needs to rely on real economy.

Reporter: now many people are engaged in the Internet business. Unlike your original business venture, what do you think?

Ding Shizhong: of course, entrepreneurship is very good. If young people start their own businesses, the Internet is of course the most opportunity and the lowest threshold, but the proportion of successful Internet start-ups is also very low.

In addition, in a sense, the industry is not good. How can the Internet be good? If the real economy does not grow, the Internet will be empty.

Only when the real economy grows, will the Internet have its content.

In the future, the whole economy will pull together, and the Internet and the real economy should be combined.

If the real economy does not grow, what will the Internet sell and do?

Reporter: what advice do you have for supporting the real economy, especially helping SMEs overcome difficulties?

Ding Shizhong: at present, the tax burden of small and medium-sized enterprises accounts for about 5% to 8% of sales revenue, and some enterprises even reach as high as 10%.

Among them, the value added tax burden accounted for more than 70%, some even more than 80%.

Most of the value-added products produced in the production process are paid taxes, resulting in lower actual profits and limited development of enterprises.

In addition, land use tax, property tax, urban construction tax, "five risks, one gold" and other taxes and fees further aggravated the burden of enterprises.

In recent years, although the government has issued a series of tax reduction and fee reduction policies, it is not enough for the vast number of traditional SMEs.

I suggest that a more targeted, specific and more effective tax reduction and reduction policy be formulated for small and medium-sized enterprises and loss making enterprises.

Reporter: you just said that traditional enterprises should have core stuff. What advice do you have in this regard?

Ding Shizhong: the reason why Chinese people want to rush to buy toilet seats and rice cookers in Japan is because the technology innovation ability of Chinese traditional production and manufacturing enterprises is insufficient.

I suggest further widening the identification field of high and new technology enterprises, and strongly support the identification of manufacturing and manufacturing traditional enterprises applying for high and new technology enterprises.

At present, the high-tech fields supported by the state exclude many traditional industries, limiting the possibility of declaring high and new technology enterprises, so that they can not enjoy the preferential policies of hi-tech enterprises, thus limiting the pformation and upgrading of traditional enterprises to a certain extent.

Therefore, I suggest that some traditional industries should be included in the technology field, especially those traditional enterprises that are undergoing pformation and upgrading, such as shoes and clothing, building materials, home appliances, food and so on.

In fact, the revised management method of hi-tech enterprises has added and supplemented some key supporting technical fields, such as "modern sports service support technology", "e-commerce and modern logistics technology" and so on, but the specific rules have not yet been promulgated, and the work guidance has not yet been implemented, hoping that the government will accelerate the landing of this policy.

For traditional industries to declare new and high technology, I also suggest that we should reduce the threshold for reporting high-tech enterprises and set different criteria for the evaluation of traditional industries.

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As a descendant of Arabia, I hope Quanzhou will play a part in the whole area.

Reporter: I heard you are descendants of Arabia. Do you have any relatives or business contacts with Arabia?

Ding Shizhong: Yes.

My ancestors were Arabs. They came to Quanzhou from the sea at the end of the Yuan Dynasty. At that time, Quanzhou was also called the port of thorn copper, the largest port in the East.

Because when the Ming Dynasty began to exclude foreigners, they lived in a small beach on the beach. They later intermarried with the local people, and then came to the present.

But now I have no contact with them. My business is also facing the Chinese market.

Reporter: your proposal last year is to support Quanzhou's exploration and establishment of Islamic financial center. Another proposal this year is to support Quanzhou's incorporation into China (Fujian) free trade pilot area, all of which emphasize Quanzhou's role as the starting point of the maritime Silk Road.

Can Quanzhou establish contact with Arabia now?

Ding Shizhong: "one belt and one road" is very important for products to trade with others.

Quanzhou is the most developed area of light industrial products. Most of the light industrial products in Arabia are imported from China.

If we tell the story of Quanzhou and Arabia in history, we can still play a role in the relationship between them.

Apart from Quanzhou's ties with Arabia, Quanzhou people also account for a large part of Taiwan's population. Taiwanese language is also known as Minnan dialect, mainly in Quanzhou, Xiamen and Zhangzhou.

Fujian's FTA now has three zones, namely Fuzhou and Xiamen, and if Quanzhou is also included in the free trade area, on the one hand, it can strengthen the impact on Taiwan. On the other hand, it can strengthen ties with Arabia on the "one belt and one road".