Shanghai to create better environment for privately-owned companies

By Liu Shi’an and Li Hongbing People’s Daily app

Shanghai mayor Ying Yong has pledged support to private enterprises, and introduced several measures to boost the healthy development of the private sector.

(Photo: VCG)

Private enterprises are an irreplaceable driving force of economic and social development in the country’s financial and business center, Ying told the People’s Daily in an interview.

They contribute to one-fourth of gross domestic product, one-fifth of foreign trade, and one-third of tax revenue. In addition, the private sector creates over 70 percent of new jobs in Shanghai, Ying added.

Private companies have become the major force in technological innovation. More than 90 percent of Shanghai’s technology companies are privately-owned.

They also inject vitality into the market, Ying said. This year, about 1,332 new companies were registered per working day in Shanghai, about 96.4 percent of which were private companies.

The mayor said Shanghai treats State-owned, privately-owned and foreign-owned companies equally and promotes coexistence among them.

He disclosed that Shanghai has rolled out a series of measures to support the private sector. Local authorities have launched a 10-billion-yuan ($1.4 billion) fund to make financing easier and less expensive for private companies, Ying said.

The city will also offer 10 billion yuan in credit and secured loans and another 10 billion yuan in guaranteed funds for small and medium private businesses, he added.

In addition, the local government will reduce taxes, land use costs and other costs to support private companies.