Wu Guangqiang

jw368@163.com

DEBATES over the necessity and importance of private enterprises have never ceased in China since the beginning of reform and opening up. Once in a while, the controversy gets more intense. Given the fact that merely 40 years ago China hardly had any private businesses, with virtually every piece of machinery and every seedling of rice belonging to the State, it is understandable that the suspicion or negation of private enterprise will linger for a long while.

Despite the incessant debates, private firms have been growing rapidly and getting increasingly stronger thanks to the steadfast support of top Chinese leadership and the public, as well as their own unremitting hard work and innovation.

Now, private enterprises have become China’s most dynamic and creative force in the market economy. Their contribution to the country’s GDP has risen from a negligible 1 percent at the start of reform to over 60 percent currently.

Private enterprises are the largest employer in all economic sectors, providing 80 percent of the job opportunities in the urban job market. They also contribute over half of China’s tax revenue.

Compared with other sectors, private firms exhibit higher efficiency and greater resiliency in the marketplace, because they must struggle to ensure the success of every penny invested from their own pockets or borrowed from the bank.

As a pioneer in reform and opening up, Shenzhen is a heaven for private enterprises. The city seized the historic opportunity after the establishment of the Shenzhen Special Economic Zone (SSEZ) in 1979, giving full play to all market forces, especially the most vigorous private firms.

Before the founding of the SSEZ, Shenzhen had only six private businesses with a meager annual turnover of 30,000 yuan (US$4,350). Today, the private sector accounts for 41.8 percent of the city’s GDP and 45 percent of the tax revenue.

Although the market proportion of Shenzhen’s private firms may not be as impressive as in some other places, their quality, innovative power and competitiveness are unmatched. The mere mention of a few renowned companies, such as Tencent, Huawei, ZTE, DJI and BYD, will fill people with admiration. The list is much longer, but this will suffice to show that Shenzhen is a paradise for dream chasers.

Tencent was born in a tiny office with a few telephone lines. DJI was inspired by a young man’s boyhood passion for model planes. Huawei was started from scratch by a PLA veteran. If their miracles have one secret in common, it is the unreserved support and fertile soil provided by the Shenzhen government for private firms, however insignificant or tiny they might be.

To encourage the private sector to grow faster and stronger, Shenzhen authorities have adopted multiple measures. A series of policies have been released to broaden the entry fields for private enterprises.

Constant efforts are being made to optimize the business environment. In 2016, Shenzhen was chosen as one of the national demonstration cities for small enterprises in the drive for mass innovation and entrepreneurship.

Some initiatives have greatly boosted the growth of the private sector, including public platforms providing service and technology support for private firms, training programs and an incubator project for businesses with the potential to be listed on stock markets.

More encouragingly, on Dec. 4, the Shenzhen government unveiled a document further supporting the development of the private sector. The document includes the following major measures: A total of 100 billion yuan in tax will be cut, an additional 100 billion yuan in bank loans will be granted, over 100 billion yuan in bonds will be issued and a 100-billion-yuan fund will be set up to ensure the stable growth of the private sector.

(The author is an English tutor and freelance writer.)