Private enterprises play important part in China’s market
Private enterprises play important part in China’ s market
Source: www.AmandaIEC.com leading Exporter and Wholesaler in Yiwu China.
Zhejiang is one of the earliest places where private business began. Their products feature small commodities. The local government offers guidance and supportive services in an effort to boost the private economy. At present, 90 percent of the local economy are in the private industry sector. Lou Guohua, one official of Yiwu City, said, “Government policies to non-state-owned industries are constantly updated according to development. Government support focuses on creating a favorable environment for private industry. The market was created as a result of the growth of small commodities. For instance, now we have “the fifth-generation market.” Our service is to create conditions and an environment in terms of giving them favorable policies to support their development and give them room for innovation and growth in the future.”
China’s non-state-owned industry is steadily growing. Its average rate of increase has kept abreast with the overall development of China’s industry. The non-state sector of the economy is facing more opportunities for growth as the government has promised to open up important markets to foreign and private investment. They include the telecommunications, retail and banking sectors. However, private enterprises are often troubled by a lack of funding and technology as well as weak management. What do they have to do to adapt themselves quickly in an ever-changing economic picture? Let’s take a look at how some private enterprises in South China are reacting.
The increasing role of the NON-STATE sector of the economy is helpful for resolving many problems on China’s road to a market economy. It will not only relieve the pressure of unemployment and boost the urbanization process, but also promote overall economic growth.
Weng Rongjin is the founder of the largest private enterprise in Yiwu City, Zhejiang Province. Early in the morning, he arrived at his textile factory to discuss market information with his technicians. Weng’s three brothers run the factory. In a span of seven years, Weng’s enterprise has grown into the largest sock manufacturer in China. It’s products have the largest domestic market share and are being exported to Russia, Japan and the United States. Their next goal is, in their own words, to be “the Socks Manufacturing King and Establishing World Brand Names.” Weng Rongjin, chairman of the Board of Langsha Textile Co. Ltd in Yiwu City, said, “It used to be a street market. A real market was established in 1985. As the Yiwu market targets domestic consumers, its merchandise can cover the entire domestic market.”
Xinguang Parrel Accessories Co. Ltd. is the leader in the industry. Its founder, Zhou Xiaoguang, has this to say about the assistance he gets from the government. He said, “Yiwu has a very good investment environment. The local government, in particular, delivers service at your door. I have never had any deal with the government. They will help you going through many procedures, including processing a business license, and put them in our hands. I don’t know exactly how to get the documents. They have a good awareness of service to people in Yiwu.”
The Yiwu market has 100,000 varieties of small commodities in 28 primary categories. The number of daily visitors reaches 160,000, including more than 2,000 foreign purchasers. The market enables non-state-owned industries to grow and this, in turn, has boosted the local economy and created 500,000 jobs.