Mao must be rolling in his grave over a recent article in the government run China Daily, entitled, “Professionals, entrepreneurs new pillar of China,” extolling the increasingly vital role China’s private sector plays in China’s growth. The article describes how China’s 150 million entrepreneurs and “freelance professionals” are a “new pillar” of Chinese society and economic development:
The United Front Work Department of the Central Committee of the Communist Party of China (CPC) has recognized business people and professionals as a new pillar of socialism with Chinese characteristics.
China’s 150 million entrepreneurs and freelance professionals are being recognized along with workers, farmers and intellectuals as a new pillar of Chinese society and economic development.
The article goes on to describe how these entrepreneurs and professionals contribute to China’s well-being:
The Outlook Weekly, Xinhua’s news magazine, reports that entrepreneurs and professionals contribute one third of the country’s total tax revenues.
Emerging as a new economic force they include private enterprise owners, technicians and managers and independent professionals such as doctors and lawyers.
Statistics show that the group has already made a significant contribution to Chinese society. In the prosperous provinces of Zhejiang and Jiangsu, private enterprises contribute about half of each province’s tax revenues.
The article notes the astounding statistic that over the last ten years, China’s private sector has contributed 75% of all new jobs in China:
The United Front Work Department said over the past 10 years, the country’s private enterprises created nearly six million new jobs each year, about 75 percent of the annual total.
Not surprisingly in a nominally Communist country, the article feels it necessary to note that “some business people and professionals have made generous charitable donations to society.” Yet, despite all the good this sector is contributing to China, the public apparently remains wary:
Experts said that although professionals and entrepreneurs make a great contribution to society, their political and social status does not match their economic status.
The article concludes by mildly calling on the government to open things up even more for the private sector to conduct business in China:
Qing Lianbin, professor with the Party School of the CPC Central Committee, said professionals and entrepreneurs hoped the Party and government would create a more favorable policy and legal environment for their development.
Private entrepreneurs hoped some industries, such as construction, logistics and banking, which are only open to state-owned enterprises and foreign companies, could also accept private sector investment.
They also believe that private enterprises and state-owned enterprises should receive equal treatment when applying for bank loans, according to the professor.
For more on China’s private sector, check out the following posts:
- Innovations in Emerging Markets Blog’s “China’s Private Firms Drive Investment Expansion“
- CLB’s “China Private Entrepreneurs Rising — Even In Mao’s Hometown.”
- South Asia Biz Blog’s “India Will Improve on the Manufacturing Side and China Will Improve on the Services Side.“
- BejingMan Blog “Can Businesses Learn from Mao?“
