Over the Three Big Mountains: The Government Handles Enterprises

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 Over the Three Big Mountains: The Government Handles Enterprises


More attention from society: facing the challenge of contradiction

Li Jin, China Enterprise Research Institute

Changes in the international economic environment have broken the export balance of private enterprises and affected the development situation. Over a period of time, risks have accumulated in the process of global economic recovery, and protectionism and unilateralism have risen significantly, which has brought many adverse effects to Chinas economy and market expectations. Data show that private enterprises account for 45% of Chinas total exports, some private export enterprises are affected, and those supporting export enterprises or private enterprises in the industrial chain will also be affected.

The domestic economy is turning to high-quality development, breaking the slow adjustment balance of private enterprises and forming long-term development pressure. In the process of industrial restructuring, the industry concentration will generally rise and the superior enterprises will win. This is the normal result of the competition of the survival of the fittest in the market. Some private enterprises will inevitably encounter difficulties and problems. In order to meet the requirements of high-quality economic development, both private enterprises and state-owned enterprises need a process of adaptation.

Moreover, some private enterprises are not adapted to supply-side structural reform, resulting in passive development. At present, the difficulties faced by the private economy in China also have their own reasons. During the period of rapid economic growth, some private enterprises are relatively extensive in operation, keen on paving and scaling up, with excessive liabilities. There are some problems in environmental protection, social security, quality, safety and credit, which are not standardized, stable or even irregular and illegal. Under the situation of strengthening supervision and law enforcement, they will inevitably face great pressure.

Government Handling: Optimizing Business Environment

Jiangxi Research Center for the Theoretical System of Socialism with Chinese Characteristics

Greater efforts should be made to reduce the threshold for private capital to enter key areas and expand the space for private economic development. We should relax the access threshold for private enterprises in key areas and continue to break down the hidden barriers for private capital to enter key areas. In particular, we should step up the implementation of the Negative List of Market Access (2018 edition), encourage private capital to focus on investing in major national strategies and projects in the field of complementary boards, and encourage local governments to draw lessons from relevant local governments to establish people. The loan risk compensation mechanism of private enterprises, the interaction between bank and tax and other practices should be carried out to increase the financing support for private investment, and further play the positive role of private enterprises in filling shortcomings, expanding domestic demand and stabilizing employment.

We should create a fairer market environment, a better legal environment and a better business environment for the development of private enterprises. We should break through all kinds of rolling doors, glass doors and revolving doors, and create a fair competition, convenient and efficient market environment for private enterprises in market access, approval and operation. We should strengthen legislative protection, optimize administrative management, crack down on illegal and criminal activities, standardize law enforcement and strengthen safeguard and supervision. In particular, we should promote the improvement of the legal provisions for the protection of property rights, make greater breakthroughs in properly handling property rights cases formed in history, solve a number of enterprises and the massesstrong reflections on property rights disputes, and protect the personal and property safety of entrepreneurs.

Thirdly, we should further implement tax and fee reduction measures to effectively reduce the cost burden of private enterprises. This years Government Work Report pointed out that the implementation of a larger tax reduction, significantly reducing the burden of corporate social security contributions, to ensure that tax reduction and fee reduction in place. How to better implement this policy, the key is to prescribe the right remedy, continuously improve the accuracy, effectiveness and pertinence of the implementation of the tax reduction and fee reduction policy, effectively promote the list of problems and rectify the accounts, so that enterprises can effectively enjoy the benefits of tax reduction and fee reduction.

Enterprises Efforts: Accelerating Hard Practice of Internal Work

Jiang Shaohua, Research Center of Socialist Theory System with Chinese Characteristics in Shandong Province

Private enterprises should make new achievements in innovation and development. We should adhere to technological innovation to drive development, guide the high-quality development of private enterprises through innovation, and give full play to the core momentum of innovation of private enterprises. Private enterprises should have a higher understanding of innovation, and have the consciousness, concept and confidence to take the road of technological development and innovation development. Actively plan the innovation development, according to the actual situation of enterprises and market development needs, determine the focus, direction and layout of technology development, and find the innovation mode and path suitable for enterprise development. For most private enterprises, we can consider cooperating with scientific research institutes, other enterprises and foreign companies to establish a collaborative innovation model and operation mechanism.