The 16th Party congress, which concluded last week, gave private-enterprise owners a shot of encouragement to expand their businesses, according to Miao Liansheng, president of the Yingli New Resources Co Ltd.
After carefully reading the Party report, which promises to "promote the healthy development of the non-public sector" and "better safeguard private property," Miao said he felt optimistic.
"We can now roll up our sleeves and work toward bigger things," he said.
Miao's company, based in Baoding, North China's Hebei Province, is China's largest producer of polycrystalline silicon solar cells. Its production capacity equals the total of other Chinese producers of such technology, according to the company.
While investment in Yingli reached over 150 million yuan (US$18.1 million) last year, its financial injection this year stands at 10 million yuan (US$1.2 million) so far.
Miao admitted he had deliberately suspended new investment while awaiting the outcome of the Party congress.
"The Party congress was so important in steering the country into the future that we had to wait to see if the domestic investment environment for private firms would change," he said.
The first 10 months of this year, however, might have been Miao's busiest.
"Although we did not go ahead with new investment, I had this underlying confidence that the Party would further boost the private economy. So we stepped up overseas investigations regarding future technology, as well as infrastructure construction and research at home," he said.
His confidence, Miao said, stems from the fact his private company was designated by the State Development Planning Commission to undertake the country's most important solar-cell production demonstration project and has enjoyed such preferential policies as tax waivers.
Now the Party congress has wrapped up and private-sector matters have been made clear, Miao has a healthy bunch of sales and technology-upgrade contracts to sign.
Liu Chengmin, president of the Maike Green Food Co Ltd, had a reaction similar to Miao's.
Liu's company is also based in Baoding, but extends far into the surrounding countryside where the company gets its raw materials to produce high-quality dehydrated vegetables for the overseas market.
Making daily deals with hundreds of local farmers, Liu said his company is in great need of policy support.
"Although we have successfully increased the income of hundreds of local people by more than three times, we are always in an inferior position whenever there is friction between us and the local farmers," Liu said.
"While the government attaches great importance to protecting the rights of farmers, the proper interests of our company should also be treated seriously. We are rich and strong private enterprises, but we are not necessarily wrong simply because we are rich."
Liu hopes the report, which promised to encourage, support and direct the development of the private economy, will improve his company's situation.
"This is very likely, now that the Ministry of Labor and Social Security and such local governments as that of Northeast China's Liaoning Province have produced special policies to really boost the private economy," Liu said.
"These are indications that more people are treating the private economy more seriously."
While the ministry vowed to waive certain taxes for individuals starting businesses, Liaoning Province promised in clear words to treat the private economy as equal to State-owned enterprises and foreign companies.
(China Daily November 22, 2002)
