2012-03-06
During the Two Sessions, standing committee member of the CPPCC, board chairman of Tongwei Group Liu Hanyuan made a proposal to vigorously develop non-governmental financial industry, and effectively relieve financing difficulties for private companies.
During the interview, Mr. Liu said, since the reform and opening up, China’s private economy has experienced gradual growth, and has greatly affected China’s economic development with significant contributions. As of September, 2011, China has over 9 million registered private companies with a total registered capital of 25 trillion. Private economy has accounted for over70% of China’s GDP, and even 80% at some coastal areas. 70% - 80% of China’s economic increment comes from private economy. Since 2000, China’s private economy revenue has been keeping a growth rate of over 40%. The taxpaying from private companies account for 60% of China’s total revenue. Private companies created over 90% jobs as the major channel for over 100 million migrant workers and over 1 million college graduates.
Mr. Liu suggested speeding up the mechanism creativity of non-government finance. May, 2010, the State Council issued the Several Opinions of the State Council on Encouraging, Supporting and Guiding the Development of Individual, Private and Other Non-public Sectors of the Economy.It is necessary to further enlarge the fields and scope of private investment, thoroughly implement a series of policies and measures, encourage and guide the entry of private capital into the industries and fields where such entry is not explicitly forbidden by a law or regulation. It is important to clearly define the scope of government investment. Government investment shall be mainly made in the economic and social fields which relate to the national security and where resources cannot be allocated effectively through market. We shall encourage and support the entry of private capital in the infrastructure, municipal works and other public service fields where market operations are practicable. We shall further adjust the layout and structure of the state-owned economy. The emphasis of investment of state-owned capital shall be placed on constantly strengthening and consolidating the key industries and crucial fields relating to the lifeline of the national economy. We shall create broader market space for private capital in the ordinary competitive fields. We shall actively boost reform in the fields of medicine, education and other social undertakings. We shall regard privately-run social undertakings as an important supplement to the development of public undertakings, and by making overall plans and rational layout, speed up the nurture and formation of a public service system with the government investment playing a dominant role and the private investment playing an ancillary role.
We shall regulate the access threshold of investment and create a market environment of fair competition and equal access. The standards for market access and preferential and supportive policies shall be open and transparent. Various investors shall be treated equally. No extra conditions shall be set exclusively for the private capital.
Additionally, Mr. Liu said, Moneylenders’ Ordinance shall be consummated and unveiled. Compared to financial institutions, private money lenders could satisfy the financial demands of small, medium, and micro business more flexibly and effectively.