Shanghai initiatives to support high-quality private sector development
Shanghai has announced 20 initiatives to boost the high-quality development of the private economy, which accounted for nearly one-third of Shanghai's economy last year.
The Shanghai Development and Reform Commission's new set of guidelines promises to enhance the confidence and optimization of the private sector.
The new initiatives, which cover market access, the business and investment environment, private financing services, and preferential policies for specific industries such as integrated circuits, biopharmaceuticals and artificial intelligence, are intended to guide private entrepreneurs and promote entrepreneurship.
Gu Jun, deputy secretary-general of the Shanghai Government and director of the Shanghai Development and Reform Commission, said that Shanghai's private economy has grown by 5.5 percent annually since 2016.
"We will ensure that the policies are carefully implemented, and we will work to promote the healthy development of the private economy," he added.
The private sector has also been a big contributor to the city's infrastructure investment, with a concentration on data centers, charging stations and delivery facilities.
Private investment increased 19.8 percent from a year ago in the first four months of the year.
They also account for one-third of total fixed asset investment in the city, over 80 percent of accredited high-technology enterprises, and more than 90 percent of small and medium-sized enterprises with high levels of professional expertise and specialized technology.
In 2022, the amount of government procurement contracts for SMEs reached 84.291 billion yuan (US$11.9 billion), accounting for 61.53 percent of total government procurement, with 43.037 billion yuan in procurement contracts signed with small and micro firms.
According to Ruan Qing, deputy director of the Shanghai Development and Reform Commission, preferential policies will be applied to those who have established corporate headquarters in Shanghai, such as the introduction of talent, the easy import of materials and facilities for research and development, the procurement of innovative products, and the transformation of research results into viable products and solutions.
In the next three years, the city will encourage private capital to extend the extent of new infrastructure investment in Shanghai by serving as a role model for significant projects focusing on green data centers and hydrogen infrastructure.
Shanghai has approximately 3 million private company organizations, according to Wang Jianming, vice chairman of the Shanghai Federation of Industry and Commerce, and they play an indispensable role in stabilizing growth, boosting employment, and improving people's livelihoods.
Shanghai will also promote the issue of real estate investment trusts (REITs) by private firms in crucial areas such as retail and consumer infrastructure, industrial parks, and help optimize the different procedures for project implementation.
The full list of measures can be viewed at https://www.shanghai.gov.cn/nw12344/20230530/f9fc6e71f1934aebacfb2656ab2b05d1.html
