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Easier financing for companies key to Fujian's future

By Jing Shuiyu and Hu Meidong | China Daily | Updated: 2019-03-07 07:38
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Chinese workers produce lithium battery on the assembly line at a factory of Contemporary Amperex Technology Co in Ningde city, Southeast China's Fujian province, Jan 10, 2018. [Photo/IC]

Fujian province will take steps to alleviate financing difficulties for private enterprises and further reduce tax burdens to shore up the economy, said the provincial governor, Tang Dengjie.

Tang said on Wednesday that the province will make full use of emerging technologies like big data to strengthen the construction of an enterprise information system so as to promote support of corporate financing.

Tang made the remarks at the plenary meeting of the Fujian delegation attending the second session of the 13th National People's Congress, which was open to the media.

Tang, also an NPC deputy, said Fujian province will take effective measures to reduce taxes and fees on private enterprises in line with the central government's determination to boost the private sector.

According to the Government Work Report, China will cut nearly 2 trillion yuan ($298.4 billion) in taxes and other areas to bolster the economy this year, especially for private and small enterprises. The tax cut plan comes after China slashed about 1.3 trillion yuan in taxes and fees last year.

The private sector has been an indispensable force driving local economic development, Tang said. He cited that private companies in Fujian contributed about 70 percent to the province's local tax revenue last year and created more than 80 percent of job opportunities.

Tang said the province's favorable policies have benefited a number of private companies, and helped accelerate their overseas expansion.

Headquartered in Quanzhou, Fujian, Anta Sports is the world's third-largest sportswear company by market value. The Hong Konglist firm reaped a record profit of 24.1 billion yuan in 2018, up 44.4 percent over the previous year, and marking the fifth straight year of double-digit growth.

"We don't want to be the Chinese Nike, but the world's Anta," said Ding Shizhong, chairman and CEO of Anta. The company sees design and scientific research as keys to improving the brand's value, according to Ding, also an NPC deputy.

Economist Wei Jianguo, vice-president of the China Center for International Economic Exchanges, said: "China has spared no efforts in easing the burden of nonpublic companies. The government strives to create a fair and transparent business environment for all market entities including privately run firms.

"A slew of policies has been rolled out to address financing problems for private businesses. The potential of the private sector economy will be further unleashed," Wei said.

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