Xiangzhou District, Zhuhai

Dong Fan, president of the Zhuhai Federation of Industry & Commerce and chairman of Jafron Biomedical lists multiple approaches to promote Zhuhai private economy at a symposium. [Photo by Zhao Zi / Zhuhai Daily]

Zhuhai was advised to reduce government-imposed transaction costs, take measures to attract and help keep high-quality talents while incentivize innovation in business. These are the measures that should be taken to spur up private economy in the opinion of the city Federation of Industry & Commerce.

The suggestions were made by Dong Fan, president of the Zhuhai Federation of Industry & Commerce and chairman of Jafron Biomedical at a recently held symposium.

As known to all, private economy is an indispensable part of the national economy. It has played an increasingly significant role in pushing forward socioeconomic development in recent years. Data shows that private enterprises contribute to more than 60 percent of China's GDP, provide 80 percent of urban jobs, and take in more than 70 percent of surplus rural labors.

In Guangdong, the private economy accounting for 53.8 percent of the province's GDP in 2017 has also become the main force of economic growth. In contrast, Zhuhai's private economy contributes to only one-third of the city's GDP growth, and is the limiting factor in the city development.

Rendering of apartments developed by Gree Electric Appliance of Zhuhai for its talents [Photo courtesy Nanfang Daily]

Reducing government-imposed transaction costs

The system transaction costs for private companies should be reduced, suggested Dong. The process should be further advanced with increased efficiency of administration review and approval and enhanced executive strength of public policy in government. In addition, a regular exchange mechanism should be established between enterprises and the governments at all levels, from municipal to district and sub-district. The comprehensive reform measures for streamlining administrative procedures are necessary, and so are combining decentralization with control and optimizing services. The business environment can therefore be further improved.

Dong also suggested a better follow-up service for rapidly developing enterprises in strategic emerging industries and encouraged government procurement of innovative products and services from small- and medium-emprises. Also, the companies' active participation in overseas investment promotions, for example, the attendance in international expos, should continue to be subsidized.

Improving market environment for fair competition

The government has to ensure a level playing field for private businesses. Dong suggests shortening the market-entry negative and removing all kinds of explicit or implicit thresholds in key areas such as infrastructure and public utilities. Private enterprises are advised to enjoy the treatment as State-owned enterprises in investing, financing, and bidding. The government can guide private enterprises to participate in mixed ownership reforms of State-owned enterprises.

Meeting housing needs for talents

Consistent powerful measures are called for stabilizing housing prices. Meanwhile, the government has to supply enough low-rent houses. The employees' needs for permanent residences and a convenient access to quality education for their children should be looked into carefully, said Dong.

Building enterprise-school cooperation ties is a great way to attract talents. Technicians at private enterprises should receive processional training to help them grow into higher-level technical talents. They have to be aware of many opportunities to build a better tomorrow in Zhuhai. Generous rewards should go to middle- and high-level scientific and technological talents of private enterprises that have made great contributions, Dong added.