China will spare no effort to create the best environment for non-state enterprises, said a leading industry official at the First China Non-State Enterprises Fair, which opened in Kunmin Friday.
"The government has pledged to clear up market barriers for non-state firms and help them raise funds," said Jing Shuping, chairman of the All-China Federation of Industry and Commerce.
The four-day fair, sponsored by the Ministry of Foreign Trade and Economic CoOperation, the All-China Federation of Industry and Commerce, the Ministry of Education, the Ministry of Science and Technology and Yunnan Province, is designed to give the non-state firms a considerable boost.
Delegates from Yunnan Province yesterday inked 85 contracts worth 11.6 billion yuan (US$1.4 billion) in total. Guangdong Province made 13 transactions, worth 963 million yuan (US$116 million), and the Guangxi Zhuang Autonomous Region signed deals worth 230 million yuan (US$27.7 million).
More than 2,300 transactions, totaling 10 billion yuan (US$1.2 billion), are expected to be made at the fair.
More than 1,000 enterprises from over 30 provinces and regions have attended the fair. Overseas companies from the United States, Australia, Canada, Thailand and Viet Nam have also sent delegates.
The fair reflects China's renewed outlook on non-state firms.
"Non-state firms will play an important role in the restructuring of the national economy," said Li Jiating, governor of Yunnan Province.
China's non-state enterprises account for over 60 percent of the country's gross domestic product. In 1999, China's 1.5 million private enterprises booked turnovers of 768 billion yuan (US$92.5 billion), up 34 percent year-on-year.
The Legend Group, China's largest non-state firm, posted a turnover of 20.3 billion yuan (US$2.5 billion) with total assets of 7.9 billion yuan (US$951.8 million) last year.
But non-state firms have been facing unequal treatment and setbacks through a legacy of discrimination in which State companies have enjoyed preferential treatment. Non-state firms have difficulty getting loans from state-owned banks and approval for listing on the stock market. They were not officially recognized until the end of 1998 when the amended Constitution stated explicitly that non-state enterprises were important components of the national economy.
Now the State has vowed to brace their development.
"The government is drafting policies to lift restrictions on market entry for non-state firms," said Ma Jiantang, director of the General Office under the State Economic and Trade Commission.
According to Ma, China will also allow non-state firms to acquire, merge or lease debt-ridden state-owned companies.
"Relevant departments are discussing details on regulations for non-state firms to participate in reforming state-owned enterprises," he said.
Zhuang Wenxue, vice-chairman of the Guangxi Zhuang Autonomous Region, said they would also map out a series of policies to boost the development of non-state firms in the region.
"Non-state firms will be allowed to invest in whatever businesses foreign companies can invest in, including financing and infrastructure construction," he said.
These policies are expected to come out next year, he added.
(China Daily 12/09/2000)
