How are Shandong & Hunan Planning to Support Private Economy?
Hi folks,
Doing a special edition today to cover the continuing series of interviews with China’s provincial Party secretaries on their approach to the private sector. On Saturday and Sunday, the paper carried interviews with the Party secretaries of Shandong and Hunan.
I’ve done a breakdown of these below. In addition, some updates on the Chinese response to the earthquake in Myanmar and Thailand.
Xi Jinping sent his condolences to Myanmar’s leader Min Aung Hlaing
The Chinese embassy in Myanmar has said that 13 Chinese nationals have been injured in earthquake
The Red Cross Society of China (RCSC) has sent 300 tents, 2,000 blankets, 600 folding beds and relief kits for 2,000 affected households.
A Chinese rescue team of 82 rescuers has landed in Myanmar.
Cheers,
Manoj
On Saturday, there was an interview with Lin Wu, Party Secretary of Shandong Province, discussing the policies related to the private sector. The first question is about how the province will implement Xi’s speech at the private sector symposium in February.
Lin says:
Shandong is a province with a large private economy, which can be summarised as ‘56789’:
5 refers to the fact that the added value of the private economy accounts for 51.7% of the province’s GDP
6 means that private investment accounts for 63.5% of total investment
7 means that private imports and exports account for 75% of total imports and exports
8 means that the employment by private enterprises in the province accounts for more than 80% of the total employment
9 means that private business entities in the province account for 98.9% of all business entities
山东是民营经济大省，可以用“56789”来概括：“5”是民营经济增加值占全省地区生产总值的51.7%，“6”是民间投资占全部投资的63.5%，“7”是民营进出口占全部进出口的75%，“8”是全省民营企业吸纳就业人口占总就业人口的80%以上，“9”是全省民营经营主体占全部经营主体的98.9%.
In terms of his agenda, Lin says that Shandong will “thoroughly implement the spirit of General Secretary Xi Jinping’s important speech”, it will take the lead and thoroughly implement the ‘two unwaverings’, “use further comprehensive deepening of reform as the driving force to optimise the development environment of the private economy, stimulate the endogenous driving force of private enterprises, improve the quality, efficiency and core competitiveness of private enterprises, strengthen the protection of the legitimate rights and interests of private enterprises and private entrepreneurs, promote the healthy development of the private economy…” 开创民营经济发展新局面，我们总体考虑是：深入贯彻落实习近平总书记在民营企业座谈会上的重要讲话精神和习近平总书记在山东考察时的重要讲话精神，锚定“走在前、挑大梁”，深入落实“两个毫不动摇”，以进一步全面深化改革为动力，着力优化民营经济发展环境，着力激发民营企业内生动力，着力提高民营企业质量、效益和核心竞争力，着力加强民营企业和民营企业家合法权益保护，推动民营经济健康发展，引导民营经济人士健康成长，为奋力谱写中国式现代化山东篇章作出更大贡献.
The province will “guide enterprises to study national industrial policies, continuously change the development mode, enhance core competitiveness, and take the road of high-quality development. Industries must undergo transformation and upgrading, supporting enterprises in strengthening technological innovation, increasing R&D investment, accelerating technological transformation, and promoting industries toward high-end, intelligent, and green development; products must move towards mid-to-high-end, support enterprises to create flagship products and distinctive brands, increase product added value, and enhance market competitiveness; management must be scientific and meticulous, guide enterprises to improve their governance structure, establish a scientific organisational structure and management model, and demand quality and efficiency from management.” 尤其要注重激发民营企业内生动力，引导企业研究国家产业政策，不断转变发展方式，提升核心竞争力，走高质量发展之路。产业要转型升级，支持企业强化科技创新，增加研发投入，加快技术改造，推动产业向高端化、智能化、绿色化迈进；产品要迈向中高端，支持企业打造拳头产品、特色品牌，提高产品附加值，增强市场竞争力；管理要科学精细，引导企业健全治理结构，建立科学的组织架构和管理模式，向管理要质量、要效益.
The second question is about what Shandong has done so far to create a good environment for the private sector. Lin says last year, the total number of private business entities in the province exceeded 14 million. 50 companies were shortlisted for the ‘Top 500 Chinese Private Enterprises in 2024’ list. There were more than 50,000 technology-based SMEs in the province, and private investment increased by 7.6%. 去年，全省民营经营主体总数超过1400万户，有50家企业入围全国工商联发布的“2024中国民营企业500强”榜单，全省科技型中小企业超过5万家，民间投资增长7.6%.
He then makes three points, i.e., establish, break and release:
First, Shandong will in due course revise its own Regulations on Promoting the Development of Private Economy to ensure equality in rights, opportunities, and rules for all business entities.
Second, it will break down various barriers in terms of market access and bidding activities.
Third, it will encourage private enterprises to enter more fields. “Last year, private capital invested in the nuclear power sector in Shandong for the first time. The proportion of private capital in the development of new energy, such as wind power and photovoltaics, has reached 40%. Shandong will continue to promote fair opening up in competitive infrastructure fields, support private enterprises to actively participate in the ‘two heavy’ construction and ‘two new’ work, encourage private enterprises to invest in emerging industries and future industry development, and guide more private capital to actively participate in building a green, low-carbon and high-quality development pilot zone, a high-level opening-up hub, and a modern marine economic development centre.” “放”，就是坚持“非禁即入”，鼓励民营企业依法进入更多领域。去年，民营资本首次进入山东核电领域，民资参股风电、光伏等新能源开发比例达到40%。山东将持续推进基础设施竞争性领域公平开放，支持民营企业积极参与“两重”建设和“两新”工作，鼓励民营企业投身新兴产业、未来产业建设，引导更多民间资本积极参与打造绿色低碳高质量发展先行区、高水平对外开放新高地、现代海洋经济发展高地.
The final question is about what sort of measures will be adopted to support the private sector, considering the challenges that it has been facing. Lin makes 5 points:
First, they will work to improve market access and access to financing.
Second, they will focus on solving the problem of arrears of accounts owed to private enterprises. He talks about legal action in this regard and use of local government special bonds.
Third, improving law-enforcement by cracking down on “random inspections, arbitrary fines and seizures, illegal cross-regional law enforcement, and profit-driven law enforcement.
Fourth, implement relief policies and improve the policy coordination system to promote the development of the private economy.
Fifth, work to build a close and clean relationship between government and business.
On Sunday, there was an interview with Shen Xiaoming, Hunan Party Secretary on the issue. The first question is about the private sector in Hunan and how the province will implement the spirit of the symposium.
Shen says that soon after the provincial standing committee held a meeting to study the spirit of General Secretary Xi Jinping’s important speech at the private enterprise symposium and set out implementation work. Shen adds that:
“Data shows that the private economy in Hunan contributes about 50% of the province’s tax revenue, about 70% of the regional GDP, more than 90% of scientific and technological innovation achievements, more than 90% of new urban employment, and more than 90% of the number of business entities.” 数据显示：湖南民营经济贡献了全省50%左右的税收、70%左右的地区生产总值、90%以上的科技创新成果、90%以上的新增城镇劳动就业、90%以上的经营主体数量.
The next bit is truly something:
“Regarding the development of the private economy, the attitude of the Hunan Provincial Party Committee and the provincial government is clear, which is to unswervingly implement the basic principles and policies of the Party and the state on the development of the private economy, unswervingly promote the development and growth of the private economy, and unswervingly serve as ‘store-keepers/service staff’ 店小二 and ‘waiters/customer service personnel’ 服务员 for private enterprises and private entrepreneurs.” 对于民营经济发展，湖南省委和省政府的态度是鲜明的，就是要坚定不移贯彻党和国家对民营经济发展的基本方针政策，坚定不移促进民营经济发展壮大，坚定不移为民营企业和民营企业家当好“店小二”“服务员”.
He then makes five points:
First, we will both research and implement new supporting policies, and resolutely abolish outdated policies that restrict the development of the private economy
Second, we will both care for and support leading private enterprises, and care for and support private start-ups
Third, we will both help private enterprises solve current difficulties and problems, and properly handle historical issues such as arrears owed to enterprises.
Fourth, we will both support private enterprises to play an important role in the main economic battlefield, and support private enterprises to fulfill social responsibilities in areas such as participating in improving student internship and practice systems, increasing employment, and improving people’s livelihoods
Fifth, we will both encourage private enterprises to take responsibility and guide private enterprises to operate with integrity according to law
一是既研究出台和落实新的支持政策，又坚决废除束缚民营经济发展的不合时宜的政策；二是既关心支持民营龙头企业，又关心支持民营初创企业；三是既帮助民营企业解决当下面临的困难和问题，又妥善处理拖欠企业账款等历史遗留问题；四是既支持民营企业在经济主战场上大显身手，又支持民营企业在参与完善学生实习实践制度、增加就业、改善民生等方面履行社会责任；五是既鼓励民营企业担当作为，又引导民营企业依法诚信经营.
The second question asks “what specific considerations and arrangements does Hunan have in implementing policy measures to promote the development of the private economy?”
Shen says that the province will work to improve the efficiency of current policies, such as “Several Policies and Measures on Supporting the Development and Growth of the Private Economy” and “Hunan Province Regulations on Optimizing the Business Environment”. He talks about addressing the “pain points, difficulties and bottlenecks faced by the development of private enterprises” through new policies and systematically studying and abolishing some outdated policy measures that restrict the development of the private economy.
The final question asks that recently some “private enterprises have reported problems such as high production and operation costs and inadequate factor guarantees. How does Hunan help private enterprises solve these development problems?” In response, Shen makes three points:
First, explore a new ‘one-stop’ mechanism for handling enterprise complaints and suggestions and make sure that government officials at all levels genuinely address business concerns.
Second, do everything possible to reduce the comprehensive operating costs of enterprises. In particular, he talks about reducing logistics and energy costs.
Third, strengthen the guarantee of factors such as finance, land, and employment. “Last year, the province reduced and exempted taxes and fees worth 56.42 billion yuan, provided financial benefits worth 20.2 billion yuan, disposed of 258,000 mu of land that had been approved but not supplied and idle land, revitalised 185,000 mu of inefficient land, and issued 1.04 billion yuan in job stabilisation subsidies.” 去年全省减免税费564.2亿元、金融让利202亿元，处置批而未供和闲置土地25.8万亩、盘活低效土地18.5万亩，发放稳岗返还资金10.4亿元。