Xu Lejiang: bridging private enterprises with the government

Date:2018-11-05 14:07:00

Chinese President Xi Jinping, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, presided over the symposium on private enterprises in Beijing on Nov. 1, 2018.

The All-China Federation of Industry and Commerce (ACFIC) is a bridge to connect the Party and the government with enterprises, and an assistant for the government to administrate non-public sector of the economy. Xu Lejiang, vice minister of the United Front Work Department of CPC Central Committee and secretary of the Party Leadership of ACFIC, took an interview on the related content of the symposium on private enterprises.

The symposium is like a “milestone” and “compass”

Reporter: What’s your opinion on the importance of the symposium?

Xu: I think two aspects can be looked at.

From the history aspect, it is of “milestone” importance. China hasn’t held such a high-profile symposium on private enterprises since the launch of the opening up and reform policy 40 years ago. President Xi reviewed in detail the policy evolution in the Party’s history of continuously promoting the development of non-public economy, elaborating the development of private enterprises from minor to mass and from weak to strong, and affirmed its important functions in China’s social economic development. Many of his comments are historical.

From the practical aspect, it may serve as “compass”. The symposium gives a clear direction of the status and future development of private enterprise in the new era. Nowadays, non-public sector are facing difficulties and problems due to various causes, which lead to unstable predictions on policy and a lack of confidence among some entrepreneurs. The symposium has completely dispelled the "haze" in their minds and gave them a "peace of mind".

Play well the bridge to connect private enterprises with government

Reporter: How would the ACFIC carry out the spirit of the symposium considering its status?

Xu: the ACFIC is a bridge to connect the Party and government with enterprises, and an assistant for the government to administrate non-public sector of the economy. We’ve put forward concrete implementation measures to study the spirit of the symposium, which include field study, helping individual companies creatively, protecting private enterprises’ legal interest, and creating sound public opinion environment.

First, we’ll visit companies, listening to their difficulties and appeals, communicating with the related government organizations on practical difficulties and reasonable asks plaguing these enterprises, and promoting the detailed implementation of policies and making them more accessible to entrepreneurs.

Second, we’ll get proficient in using “Internet plus” method to provide private enterprises with policies, information, talent, legal service and other services, and to effectively help them solve common prominent problems such as innovation, financing, and legal rights.

Third, we’ll actively protect private enterprises’ legal interest by promoting property rights protection and providing rights protection service. We’ll make full use of the national unified enterprise rights protection platform and the ACFIC Legal Rights Protection Service Center and strengthen property rights protection with each case.
And fourth, we’ll try to improve public opinion environment by publicizing typical stories and setting examples for the rest. For reproaches, denies and doubts on non-public sector, we’ll make clarifications and guidance in time.

Private entrepreneurs have new expectations at the moment. The ACFIC will enhance self reform to improve service capability and quality. If we don’t, we’ll not be able to become a “home of direction, acceptance, belonging, honor and achievement” for them.

Guide private enterprises to the track of high-quality development

Reporter: What is the acting point of the ACFIC in guiding private enterprises to develop with high-quality?

Xu: President Xi demanded the implementation of policies and measures in six aspects on the symposium, which are directed at the "difficult", "painful" and "anxious" points of enterprises. These six policy measures are practical and addressing enterprises’ concrete and major concerns. They are not only the key to solve the current problems facing non-public sector but also crucial in realizing their high-quality development. The ACFIC will put efforts in guiding private enterprises to go smooth and far.

One of our emphasis is to guide private enterprises to practice good internal skills and improve their own quality. We encourage entrepreneurs to speak and follow the right path, to improve management and operational ability, and to live up to the expectations of concentrating on running businesses, observing discipline and law, earnestly fulfilling social responsibilities and building up a good corporate image.

Another emphasis is to promote a new type of cordial and clean relationship between government and business.

The ACFIC has a perfect network of all its sub-organizations including business chambers and associations. They have played effective role in guiding and helping private enterprises with economic service, communicating their demands, protecting their rights, enhancing self-discipline and coordinating their attendance in social governance. We’ll use our advantage of these business chambers and associations to strengthen industry self-regulation, standardizing internal orders, and to contribute to building a sound business environment and a new type of cordial and clean relationship between government and business.

In fact, the business environment and government-business relationship facing private enterprises have received new and positive changes that are obvious and sensible after the 18th National Congress of the CPC.
Promoting information communication between private enterprises and financial organizations

Reporter: What will the ACFIC do to help solve the financing difficulty facing private enterprises, which is also a mater you have paid close attention to?

Xu: The ACFIC has taken the financing problems facing private enterprises as a key issue to cope with. Through holding symposiums, interviews and field study and basing on their opinions and appeals, we’ll work on the following aspects with relevant departments:

First, we’ll promote detailed policy implementation. We have kept a close relationship with the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission. At present, we are conducting a third-party evaluation of the policy implementation to alleviate the difficulty and high cost of financing for small and micro firms upon the requirement from the Financial Stability and Development Commission of the State Council. By listening to their appeals, we’ll have an in-depth understanding of the problems and difficulties in implementing relevant policies.

Second, we’ll guide enterprises to reduce leverage. We are going to hold this meeting on the work of preventing and treating risks for private enterprises in the ACFIC system, where we will put forward specifications on reducing leverage and preventing excessive financing.

Third, we’ll consolidate our cooperation with financial departments. In recent years, most grass-root federations of industry and commerce (FIC) have signed cooperation agreement with financial organizations. Through organizing partnering meetings and talks between companies and banks, they have solved some of the financing problems such as information gap. Next, we’ll continue making full use of this unique advantage of grass-root FICs to improve our work with innovation so as to promote more enterprises’ direct cooperation with financial organizations.

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