Shanghai-based delegates attending China’s ongoing two sessions in Beijing are prioritizing the development of private enterprises, especially micro and small-sized companies. Their proposals align with the Government Work Report released on Sunday, which emphasized the importance of promoting self-employed individuals and developing the private sector, especially small and medium-sized enterprises.
Deputy to the National People’s Congress and chairman of Shanghai-based conglomerate Weida Hi-Tech Holdings Ltd, Zhou Tongyu, suggested more support for the issuance of real estate investment trusts that have privately owned industrial parks as their underlying assets. Zhou recommended drafting supportive documents and allowing the Shanghai Stock Exchange to permit the trading of privately backed REITs.
Zhu Jiandi, another NPC deputy and chairman of accounting firm BDO in China, suggested innovating the credit rating system for technologically advanced SMEs to address their long-term financing difficulties. Ding Zuohong, a member of the 14th CPPCC National Committee and chairman of furniture retailer Yuexing Group, emphasized encouraging self-employed individuals, which he described as the “capillaries” of China’s industrial and supply chains.
The proposals come as China aims to stimulate the country’s economic growth by supporting private enterprises, which are seen as critical to driving job creation and innovation. Despite the sector’s significant contribution to the country’s economic growth, privately owned companies have relatively low investment willingness due to market uncertainties from COVID-19 over the past three years. Therefore, more efforts are required to address the financing challenges facing these companies, including reductions or exemptions of social security contributions and government subsidies to stabilize employment.