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Where is the way for private enterprises to survive?

  • Time of issue:2018-09-29 18:59

(Summary description)Nowadays, the trend of China's economy and whether the privately owned economy should withdraw from the market arena are fully discussed. Many large-scale steel companies with Chinese prefixes are large-scale, cross-border, and high-start steel leaders. Their advantages are beyond the reach of private small and medium-sized steel companies. Private steel companies are facing unprecedented challenges.

Where is the way for private enterprises to survive?

(Summary description)Nowadays, the trend of China's economy and whether the privately owned economy should withdraw from the market arena are fully discussed. Many large-scale steel companies with Chinese prefixes are large-scale, cross-border, and high-start steel leaders. Their advantages are beyond the reach of private small and medium-sized steel companies. Private steel companies are facing unprecedented challenges.

  • Categories:Industry News
  • Author:
  • Origin:Ferrous Metallurgy
  • Time of issue:2018-09-29 18:59
  • Views:
  Nowadays, the trend of China's economy and whether the privately owned economy should withdraw from the market arena are fully discussed. Many large-scale steel companies with Chinese prefixes are large-scale, cross-border, and high-start steel leaders. Their advantages are beyond the reach of private small and medium-sized steel companies. Private steel companies are facing unprecedented challenges.
  1. In the market, how can private steel and state-owned steel coexist?
  Recently, a government leader of a provincial capital city in the Northeast region publicly stated in a meeting that certain projects in this region only use steel materials with a Chinese prefix. Openly exclude private steel companies that have the strength and want to invest! However, in recent years, through the efforts of governments from all walks of life, the business environment in Northeast China has improved greatly, but such unfair competition still exists.
In the "Symposium to Commemorate the 40th Anniversary of China’s Reform and Opening-up and the 20th Anniversary of the Founding of the 50-person Forum" held a few days ago, Yang Weimin, deputy director of the Economic Committee of the National Committee of the Chinese People’s Political Consultative Conference and former deputy director of the Office of the Central Financial and Economic Leadership Committee, gave a very direct opinion on this topic. Recommendation: "In the long run, we should gradually dilute and abolish the ownership classification of state-owned enterprises, private enterprises, and foreign enterprises. According to the requirements of the 19th CPC National Congress, all enterprises registered in China must be treated equally in law and equal in policy. The meaning behind this sentence is that We must gradually abolish this classification of ownership." If we can really do this, it means that the market access threshold is the same. Discrimination and monopoly are eliminated. Everyone can come in and play. Who loses and wins is based on real skills. say.
   However, it is always difficult to move the cake of vested interests. The suggestion of Li Yang, former deputy dean of the Chinese Academy of Social Sciences, is more gentle-
   Private enterprises are looking for state-owned enterprises as shelters. I would rather say that it is a self-rescue measure in the face of severe economic downward pressure. But the disadvantages are probably obvious, because the efficiency of state-owned enterprises is generally lower than that of private enterprises.
 
  2. How to break regional exclusionism?
  Mr. Xiang Songzuo, chief economist of the Agricultural Bank of China, once believed that private steel enterprises and state-owned enterprises cannot compete fairly to a certain extent. He said, “State-owned enterprises, first of all, the national name, the bank feels safe to lend him money. Members, the president is not responsible, or it can be justified to have responsibility. This is a state-owned enterprise. However, if there is a problem with a private steel enterprise, people will immediately doubt whether you have privately accepted or not. This is an unspoken rule. It’s not a clear-cut rule, but that’s what the subconscious mind is like."
   Do private steel companies really lose out to central enterprises and state-owned enterprises?
Ma Jiantang, Secretary of the Party Leadership Group and Deputy Director of the Development Research Center of the State Council, said at the China Economic 50 Forum: “Is there any landmark and touchstone reforms in the new round of reform and opening up? Is there any reform that will affect the whole body? Reforms that really give everyone peace of mind, if any, may be an area to deepen the status, role, and understanding of the private economy."
  The competition between central enterprises, state-owned enterprises & private enterprises is not only a competition of financial resources behind it, but also a comprehensive competition of efficiency and benefit under a market-oriented economic system. The main experience brought to our country in the past 40 years of reform and opening up is that "we must adhere to the direction of market-oriented and legalized reforms."

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