Shanghai CPPCC session looks to aiding private business to thrive

Shanghai is advised to further raise the importance of private enterprises with new targeted measures for private businesses to thrive, and more headquarters to be set up in the city.

The Shanghai Federation of Industry and Commerce and local political advisers have proposed to the ongoing Shanghai CPPCC session to leverage private business headquarters to reinvigorate economic development.

As of July 2023, Shanghai has accredited five batches of a total of 501 private enterprise headquarters and institutions, covering manufacturing, information services, wholesale and retail, and science and technology.

Private business plays a crucial role in the economy and has been showing strong momentum, especially in the smart technology and manufacturing sectors.

According to the Shanghai Federation of Industry and Commerce, around 80 percent of high-tech enterprises in the city are privately owned, and in the first half of 2023, the total import and export value of private businesses in the city stood at 641 billion yuan (US$89 billion), an increase of 20.7 percent year on year. Their combined export value accounted for 40.2 percent of the total export value in the city.

The proposal from the Shanghai Federation of Industry and Commerce calls for further efforts to bolster the vitality of businesses of different types, such as those specializing in financial investment or innovative research activities.

Joint approaches should be drawn up for the city to focus on private businesses in strategic industries such as integrated circuitry, biopharmaceuticals, and artificial intelligence.

There should also be different criteria for varied kinds of headquarters of private businesses in diverse industry sectors, so that there could be further synergies to fully leverage resources and boost economic development.

A regular exchange mechanism between private business owners at the municipal level should also be introduced to offer designated services and communication channels with authorities and relevant departments for specific private enterprises.

The lack of top talents in private businesses is a crucial issue which requires incentives earmarked to attract talent, such as medical insurance, accommodation, and education.

Shanghai CPPCC member Wang Sen also called for more support for the financing needs of private businesses.

Further incentives should include new measures to target high-tech talent hiring needs and vocational training, he added.