Editor's note: SAY WHAT? is an original video series CGTN Digital presents for the upcoming Two Sessions. Each episode introduces a term that will be frequently mentioned and discussed during the sessions. Hope this is an easier start for you to better understand China's important annual political event. The one in this episode: private enterprises.
What does "Made in China" mean to you?
Cheap plastic toys? Low-cost sweaters? No. The term doesn't mean that any more.
Many people would now connect it with some big international names like Huawei or Alibaba.
Indeed, private enterprises are now a powerful force in China. They support and promote the country's economic growth.
The development of private enterprises in China can be summarized as "56789" which read as follows:
Fifty percent of the country's tax revenues come from them; as well as 60 percent of GDP; they are responsible for 70 percent of China's technological innovation; and 80 percent of urban labor employment; lastly, over 90 percent of the Chinese enterprises are privately owned.
Huawei, Tencent, and Alibaba ... These world-class enterprises lead high-quality development of the Chinese economy.
But small private enterprises have faced big challenges: unstable cash flows resulted from continued international trade frictions and worsened by the ongoing COVID-19 pandemic.
How to get back to work and receive sufficient financial support?
Tackling the lack of turnover is the first step. Since the coronavirus outbreak, the Chinese government has introduced a series of fiscal, tax, and financial policies to support private enterprises.
Earlier this year, four announcements were issued in one day, giving preferential policies, including tax exemptions, to support micro-, small and medium-sized businesses.
The banking sector had also made full use of financial instruments to boost private enterprises.
Meanwhile, industries were forced to reconsider their business models, accelerating their use of new technologies such as 5G and AI.
For example, restaurants live stream chefs working in their kitchens to attract orders; mobile phones move press conferences online; department stores build up virtual counters; and even real estate companies offer online viewing options.
Faced with difficulties, private enterprises in China have come up with some extraordinary solutions. They have unique advantages and they can innovate and adapt at speed.
At the same time, policy support for fund utilization, recruitment and market regulation is crucial, too.
Macro regulation and policy support are always a hot topic at the Two Sessions. What new measures will be introduced to help private enterprises this year? It's worth watching out for.