China's Economic Reform: Economic development of Chinese private enterprises

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02:07

We return to news from China. A new beginning forty years ago brought about the dawn of a new era for private enterprises. First legalized in 1978 as part of the nation's reform and opening up, private firms have become a dominant source of growth, employment, exports and more. CGTN reporter Mark Fontes has more.

A success story 25 years in the making, Geely, the Chinese multinational automotive giant founded by Li Shufu remains one of the nation's most prolific privately-owned companies. Its Hangzhou neighbor Chint Group is another. The low-voltage power transmission and electric distribution company also enjoys the benefits of China's private sector.

Chint saw a 26 percent sales jump in the first half of 2018, while Geely tries to top its banner 2017, when their sales were up 63 percent over the prior year. Experts say China's economic reform is to thank.

GAO PO, SENIOR MANAGER DEPARTMENT OF PUBLIC RELATIONS AND COMMUNICATION, GEELY "China's reform and opening up has allowed the nation to promote its manufacturing industry, which in turn has given our auto industry the opportunity to compete with foreign brands."

CHEN JIANKE, VICE PRESIDENT CHINT GROUP "In the past, China's private enterprises and state-owned enterprises developed separately. But now the government utilizes a mixed economy of private and state-owned enterprises, by which private enterprises can hold shares of state-owned ones. This was hardly imaginable before."

Officials from Chint Group add that the current China-US trade tension has had little impact on their profits.

LU CHUAN, PRESIDENT CHINT NEW ENERGY DEVELOPMENT CO., LTD. "Our shipment quantity is 30% higher than last year's. Secondly, we believe that the Chinese government and the US government are expected to resolve their trade disputes. In the long run, the trade war itself would have negative effects on the enterprises of the participating countries."

Forty years on, China's economic growth in its private enterprises is expected to develop even more. Mark Fontes, CGTN, HangZhou.