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Hainan promotes high-quality development of private enterprises
UpdateTime:2023-03-11 author:Nicki Johnson source:HICN

At the 2023 "two sessions", the National People’s Congress (NPC) and the Chinese People’s Political Consultative Congress (CPPCC), which are currently being held in Beijing, "private enterprises" have once again drawn nationwide attention.

According to the Government Work Report unveiled during the ongoing “two sessions”, property rights of private enterprises and the legal rights and interests of entrepreneurs should be well protected to promote the development and growth of private enterprises and the private economy. Additionally, an environment for fair competition and competitive development for all types of enterprises should be created to boost market prospects.

China’s southern province of Hainan, which is on the path to developing the world’s largest free trade port, has long attached great importance to the development of the private economy.

Aerial view of the Resort Software Community, one of the eleven key industrial parks in the Hainan Free Trade Port. (www.rschn.com)

Way back in June 2018, Hainan issued a raft of measures on optimizing the rule of law, government affairs, and the market environment to promote the growth of private economy. And local financial authorities also passed ten investment and financing facilitation measures to support private enterprises in the reduction of financing costs.

In June, 2022, the Provincial Development and Reform Commission drafted a series of regulations on promoting the development of private enterprises, emphasizing the implementation of a negative list system for market access for private enterprises. Based on the system, no unit or individual may set differentiated market access conditions or impose discriminatory conditions unfavorable to private enterprises due to different forms of ownership.

At the same time, the regulations also encourage private capital to enter industries and fields that are not clearly prohibited by laws and administrative regulations, and support the participation of private enterprises in the development of major Hainan Free Trade Port projects.

According to the Hainan Federation of Industry and Commerce, in 2021, the province’s private economy realized an added value of nearly 450 billion yuan (USD 64.6 billion), accounting for 69.4% of the province's GDP in the same period, an increase of 11.8% year-on-year. The private economy achieved tax revenues of 121.09 billion yuan (USD 17.4 billion) for the year, accounting for 82.8% of the province's total tax revenues, a year-on-year increase of 22.2%.

In 2022, of the 1,545 enterprises with actual import and export performance in the province, 1,366 were private enterprises, accounting for 88.4% of the total, and the total value of private imports and exports measured 47% of the total import and export value in the province.

Recently, statistics released by Haikou Customs show that imports and exports of private enterprises in Hainan in the first two months of 2023 were valued at 19.33 billion yuan (USD 2.7 billion), a year-on-year increase of 66.9%, accounting for 56% of the province’s total import and export figures, meaning that the private enterprise remains the largest foreign trade entity in Hainan.

Hainan Hiwork, which opened offices in the Hainan Free Trade Port Resort Software Community in April, 2019, is a service-oriented private enterprise in the digital economy industry and was named one of the top ten private enterprises in Hainan in 2021. According to Zhang Yi, general manager of the company, through system innovation and optimization of the business environment, Hainan is getting stronger and stronger, and the sweeping changes have brought a lot of benefits to private enterprises in the province.

In the area of rural revitalization, more and more Hainan private enterprises are taking practical actions to improve wealth and incomes in the province’s vast countryside. The Yijie Comic Association Entrepreneurial Incubation Base, located in Changxue Village, Longqiao Town, Longhua District, Haikou, is also working to develop the area into an “animation town” to promote the development of the local rural economy.

Yijie Comic Association animators hard at work in Changxue Village, Longqiao Town, Longhua District, Haikou. (Photo / Li Hao)

Visitors in Changxue Village, Longqiao Town, Longhua District, Haikou on Feb. 1, 2023. (Photo: Zhang Liyun / Xinhua)

“After we opened our association here in Changxue Village, we began providing jobs in the local community. We have also invested nearly 15 million yuan (USD 2.2 million) in renovating houses in the village to provide supporting facilities to bring in animation talent, generating 9.47 million yuan (USD 1.4 million) in income for local residents," said Yi Hui, founder of Yijie Comic Association. 


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