BEIJING — Chinese personal entrepreneurs’ confidence in pursuing high-quality progression is recovering, driven by new orders, increased competitiveness and a business environment.
The revival of personal businesses and the improvement of personal seller sentiment are for the country’s continued growth, as the personal sector has been a key pillar of China’s economic expansion.
Economic experts and the media use a combination of the numbers 50, 60, 70 and 80 to describe the contributions of the personal sector to the Chinese economy. The sector contributes about 50% of China’s tax revenue, 60% of its GDP, 70% of its technological innovation, and accounts for 80% of its urban employment.
The optimism for the progression in the personal sector reflects China’s expansion momentum in the first quarter of this year.
More orders, recovering expectations
Visiting customers, negotiating orders and attending exhibitions have been responsibilities since early 2023 for Wang Xincheng, chairman of Changjiang Electric, a Hubei-based company specializing in energy and smart structure services.
The company’s orders totaled 810 million yuan ($117 million) in January and posted a 15 percent year-on-year increase in the first quarter.
“The growth momentum is good, with new orders on the way,” Mr. Wang said, noting that the company is operating at full capacity.
Changjiang Electric’s delight echoes the broader recovery of the world’s second-largest economy. China’s economy grew 4. 5% more than expected in the first quarter of this year, with commercial production and household intake rebounding.
China’s personal sector, in particular, has seen a long-awaited recovery. Despite weak global growth, China’s foreign personal industry rose 14. 4 percent from a year earlier in the first quarter, accounting for 52. 4 percent of the country’s total.
The Small and Medium-sized Enterprise Development Index, in a survey of 3,000 small and medium-sized enterprises in China, recovered to 89. 3 in the first quarter of 2023 from 88 in the last quarter. Its sub-indices for the 8 primary sectors, adding construction, transport, accommodation and food services, increased in all areas.
“The world economy is recovering. More importantly, the central and local governments have sent a transparent signal of personal sector development,” said Wu Xiaoquan, chief operating officer of Nanjing TICA Climate Solutions Co Ltd. “We are sure of our future. “
TICA’s commercial functionality increased by 10% to 15% in the first 3 months of this year, with orders for commercial production projects and markets expanding significantly.
Sharpening of new edges
Despite China’s expansion push, many personal marketers said it takes more time for the market to fully recover from the COVID-induced economic fallout, leading to demanding situations such as emerging costs, investment and hiring difficulties, and weak global demand.
Tang Fangming, deputy general manager of Jiangsu Hengli Chemical Fiber Co Ltd, said that despite the backlog of orders, corporations in the sector are “just recovering” and the foundation for recovery has yet to solidify.
To take the lead in progression, the company has redoubled its efforts in studies and progression, to explore its area of progression by harnessing new tissues and energies.
Shenghong Group, a textile industry leader in east China’s Jiangsu Province, has accelerated its presence in the emerging sectors of new energy, new fabrics and green and low-carbon development.
The company’s ability to produce regenerated fibres from plastic bottle waste now accounts for more than 50% of global market share.
Wuhan Jingce Electronic Group Co Ltd, a high-tech company that supplies products and tests in spaces such as semiconductors, presentations and new energy, has more than doubled its spending on R.
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“Our company has been under pressure in recent years, but it also gives us the opportunity of our own functions and competitiveness,” said Shen Yafei, the company’s vice general manager.
Enabling environment
While corporations strive to thrive, their business environment is also improving, with a multitude of supportive measures and commitments made through governments at other levels.
Appropriate recommendation is given to the personal sector for its healthy and high-quality development, and personal enterprises take the initiative to pursue high-quality development. These are messages delivered at the annual “two sessions” held in March this year.
On April 21, the first assembly of the Twentieth Central Committee of the Communist Party of China Comprehensive Reform Deepening Commission pointed out that personal economy is a constant precept of the CPC Central Committee.
It is also imperative to help individual enterprises locate their rightful position in high-quality progression and the quality of their progression through self-reform and progression, corporate compliance, as well as transformation and improvement, the meeting said, calling for efforts to make certain preferential implementation policies precise to respond well to enterprises’ difficulties.
In terms of policy implementation, over the past five years, enterprises have benefited from a total of more than 8 trillion yuan in new tax cuts and payments and tax deferrals and exemptions, accounting for about 70 percent of the total number, Mr. Wang said. . Jun, head of the state tax administration, last month.
Among self-employed families in the economy, 80 percent no longer pay taxes after the government implemented a series of supportive policies, according to Wang.
Since the beginning of this year, many localities in the country have put in place special policies and measures to help the personal sector. These policies and measures cover areas such as finance, talent, generation and land use, and deserve the trust of personal companies. in development.
“Only when all parties work together to help ease the pressures and burdens of personal businesses can marketers feel relaxed, friendly and aim high,” said Zhang Qing, deputy director of the Wuhan Association of Small and Medium Enterprises.
Hu Yufang, chairman of Suzhou Taihu Snow Silk Co Ltd, knew that seizing new opportunities would bring better prospects. “Faced with uncertainties, we don’t sit back and wait, but decide to face them head-on,” Hu said.
The company, indexed on the Beijing Stock Exchange, has used online live streaming to expand sales and has controlled attracting more consumers offline by opening new outlets on popular online sites.
Liu Cong, president of the Jiangsu Provincial Federation of Industry and Commerce, said the overall market scenario has advanced since the beginning of the year, and personal marketers feel more confident, lively and ambitious.
“As support continues to fall, we have the confidence to build momentum,” Liu said.