Giving voice to the issues faced by enterprises

LOCAL private companies expect easier financing, a lower threshold to market admission and better communication with the government, according to their representatives.

During a conference hosted by the Chinese People’s Political Consultative Conference Shanghai Committee, 13 representatives of local private enterprises elaborated on some of the challenges that private companies face.

Some are long standing, such as difficulty obtaining loans with relatively low interest. 

"The key point is to establish a credit system for private enterprises,” said Chen Chang, vice chairman of the Shanghai Federation of Industry and Commerce, a non-governmental organization that functions as the communication channel between the government and non-public sectors of the economy. 

He said the federation has run a trial with scientific and innovative enterprises, together with the local taxation bureau and some banks. It will then be extended to other private companies.

Private companies would also like to be treated in line with state-owned enterprises.

Lin Kaiwen, a standing committee member of the CPPCC, said private enterprises should have more opportunities, which would improve Shanghai's economy as a whole. 

At present, private companies account for one fourth of the total economy of Shanghai but pay more than one third of the total tax.

Wang Zhixiong, vice chairman of the Chinese People’s Political Consultative Conference Shanghai Committee and chairman of the Shanghai federation of industry and commerce, said he believed the business environment for private companies had improved over the past few years and he expected them to have a bright future 

Insufficient communication between the government and private companies is also a worry. 

Ding Zuohong, a representative from the private companies said that although they have the Shanghai Federation of Industry and Commerce to ask for help, it cannot interact smoothly with the  Shanghai Development and Reform Commission or Shanghai Commission of Economy and Information or other government organizations.

Chen Chang promised to make full use of the Shanghai Federation of Industry and Commerce to facilitate communication.

The conference was also held to implement the 27 measures to promote the development of private companies issued by the Shanghai Municipal Government on November 3.