What Did Textile Entrepreneurs Say About The "28 Rules" For Supporting The Reform And Development Of Private Enterprises?

In 2019, promoting the healthy development of private economy has always been a major event on the government's mind. Near the end of the year, the decision-making level 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") was released. Twenty eight measures were repeatedly studied by entrepreneurs, and "I have a good idea", many entrepreneurs said in an interview with reporters.

In the process of the development and improvement of China's market economy, the number of private enterprises accounts for more than 90% of the market players, and their contribution to economic growth, employment rate and innovation is more than 80%, which is an indispensable force to promote China's development. However, for a long time, all kinds of tangible and intangible barriers to access are still important constraints for 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 CPC Central Committee and the State Council have always emphasized the decisive role of the market and the fundamental role of competition, creating a market environment, policy environment, and legal environment for fair competition, and ensuring equal rights, opportunities, and rules for all types of market subjects. However, in reality, due to the constraints of specific systems and mechanisms and various interest barriers, these very good "top-level designs" are still difficult to implement in practice, and various local departments still have various "middle obstruction" phenomena, making private enterprises still face various problems in the development process.

"Against this background, the issuance of the Opinions is of great significance. The document focuses on problem orientation and goal orientation, and is highly normative and operational." Wu Changhai, vice president of the Capital Finance Research Institute of China University of Political Science and Law, said that the Opinions are not simple policy support, but the further opening and development of the market economy, "If these regulations are put in place, they 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 Holding Group Co., Ltd., called the Opinions "the sea calming needle" to protect private enterprises, private entrepreneurs and private entrepreneurs' property. In his opinion, the 28 articles in the Opinion are all "fair".

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 unswerving" principle. Give private entrepreneurs "reassurance". Zhao Linzhong told reporters that the speech of the General Secretary encouraged the confidence of entrepreneurs, and government departments at all levels have successively introduced many policies to support the development of private enterprises. At the same time, however, private enterprises still face "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 a series of documents such as the company's legal representative and spouse's identity certificate, household registration certificate, marriage certificate, house property certificate, credit certificate, etc. The procedures were complicated, and the review was much stricter than that of a state-owned enterprise. "Is this discrimination?"

This situation exists in all aspects of the operation and development of private enterprises. Wu Changhai said that in their research, they found that private enterprises faced certain discriminatory views and practices in tax burden, financing costs, entrepreneur property, bidding and other aspects. "These discriminatory practices lead to the instability of the people's (private entrepreneurs') heart and the lack of backbone, which affects the long-term business planning and strategy of private enterprises and affects their growth."

According to statistics, the average life span of Japanese SMEs is 12 years, while that of Chinese SMEs is about 3 years. In the economic downturn cycle, it is only about 2.5 years. A variety of reasons have caused the operating difficulties of private enterprises in China, and the life span has also been affected.

The Opinion places "fairness" in an extremely important position, and there are nine references throughout the article. The Opinions pointed out that we should "adhere to fair competition, treat all kinds of market subjects equally, create a fair market environment, policy environment, and legal environment, and ensure equal rights, opportunities, and rules", "implement a fair and unified market supervision system", and "strengthen the rigid constraints of fair competition review system" "Perfect the equal protection mechanism of law enforcement and justice for private enterprises", etc. The Opinions regard deepening "deregulation, regulation and service", relaxing market access, and unifying fair supervision as the breakthrough points to optimize the market environment.

What is worth noting is the strength of the government in opening up market access for private enterprises. The Opinions confirmed that competitive business will be liberalized and market competition mechanism will be further introduced in key industries and fields such as power, telecommunications, railway, oil, natural gas, etc. "This reform is very strong. If it can be implemented without discount, it can directly eliminate the problem of 'unfair starting point' among enterprises, and it can also stimulate market vitality," said Jiang Zhen, associate researcher of the Institute of Financial Strategy of the Chinese Academy of Social Sciences and deputy secretary-general of the Finance and Taxation Research Center.

Prior to this, the State Council has issued Several Opinions on Encouraging, Supporting and Guiding the Development of Private and Private Non public Economy, which has played a great role in solving the problems of "entering without prohibition", that is, encouraging and guiding private capital to enter industries and fields not explicitly prohibited by laws and regulations, as well as solving hidden access barriers such as "glass doors" and "spring doors". "However, as time goes by, some old problems have not been eliminated from their deep-rooted roots, and some new problems have been exposed from time to time." Qi Yudong said that the issuance of the Opinions at this time can be seen as the continuation and deepening of the development of policies. The implementation of these measures will enable the decisive role of the market and the fundamental role of competition to be in a wider range, more links Expand deeper.

Whether it is market access or "deregulation and service" reform, the Opinions have introduced a number of fair hard and practical measures. Zhao Linzhong sighed that the Opinions took into account all the difficult aspects in the development of private enterprises, "fairness is the best business environment for private enterprises, and a fair environment is the best support for private enterprises."

Let private entrepreneurs stabilize expectations and confidence

The introduction of the Opinions has greatly encouraged private entrepreneurs. Ding Yang, a researcher at the Private Enterprise Development Research Center of China Minsheng Banking Research Institute, said that this encouragement is different from the past, and the role of the "sea calming needle" is more obvious. Why? He said that compared with previous policy documents, the Opinions changed the subject from "private economy" to "private enterprises", so the policies were "more practical", the objects "more focused", and the measures "more grounded".

For example, the Opinions clearly proposed to implement policies such as reducing the VAT rate, expanding the scope of small and micro enterprises enjoying tax incentives, increasing the additional deduction of R&D expenses, and reducing the social security rate. Yu Hong, vice president of the China Institute of Public Finance at Shanghai University of Finance and Economics, said that policies are no longer just about the general direction, but more about details. During the implementation of tax and fee reduction, many new problems and new phenomena have also been encountered. The decision makers have noticed that to solve the problems and give full play to the effects of the policies, it is necessary to help enterprises enhance their market competitiveness.

There is also the problem of "difficulty in financing" of SMEs. In the past, there were also some phenomena of "one size fits all", and the policies were not implemented from the perspective of enterprises. The Opinions also took various situations into consideration. Jiang Zhen said that the value of the Opinions lies in the clarification of some puzzles and problems of private enterprises and their related policies and positions in the current market economy, which is very important for private entrepreneurs to stabilize their expectations and confidence.

Since the beginning of this year, the decline in global demand and the impact of external trade frictions have led to a continuous decline in the investment intentions of private enterprises. In the first November of 2019, the growth rate of private fixed asset investment has declined by 4.2 percentage points compared with that of last year, which is an important reason for the weak investment in the manufacturing industry this year. This is inseparable from the lack of expectations of private entrepreneurs. Therefore, if you want to promote the full burst of creativity of private enterprises, you should do everything possible to stabilize expectations and improve confidence.

Jiang Zhen said that it was just the right time to read the Opinions. "The issuance of the Opinions will certainly play an important role in promoting our current and future environmental situation, and these hard measures will have a very important help and support for the current economic situation." Zhao Linzhong believes that a good business environment is a productive force, and the construction of the environment needs sustained efforts and the support of the whole society. With such a high level, the Central Committee of the Communist Party of China has made continuous voice and issued intensive policies. It is believed that private enterprises will usher in a warm spring.

The most important thing now is how to implement the policy. Wu Changhai believes that 28 tasks should be broken down, and benchmarking departments should be implemented layer by layer. He said that with the development of the market economy, state-owned capital and private capital should be further integrated. Therefore, the protection and support of private capital corresponding to state-owned capital should also be put on the agenda to protect the legitimate and equal right to operate private capital. "28 articles should be formulated into laws in the form of legislation by the National People's Congress, and the protection of the legitimate property of private enterprises and entrepreneurs should be promoted to the legal level."