With China close to WTO entry, the country's private enterprises
must invigorate themselves by creating more high-tech added
value to find the domestic market niche coveted by many foreign
Zhang Huaan, a
deputy to the Ninth National People's Congress (NPC) and president
of Fujian Gold Deer Group, a giant mosquito-repellent producer
in Quanzhou City, Fujian Province, made this remark during
the annual NPC session which concluded yesterday.
According to him,
China private economy has made thriving and fast development
in recent years. Private enterprises in Quanzhou, for example,
contributed 80 percent to the local GDP last year.
Yet, Zhang said
many private enterprises in China were not well prepared for
WTO membership. They face many problems for further development,
such as difficult access to bank loans, low hi-tech level,
outdated technology and equipment, and above all, weak awareness
of how to integrate themselves into the global market.
has formulated many polices to support private sector, it
is still extremely difficult for small firms, even those with
good prospects, to get a loan. Coordination should be achieved
between banks, enterprises and other related sectors to improve
this situation and create a better climate for the growth
of the sector, he said.
Many private enterprises
in China are backward in terms of technology and equipment,
said Zhang. Most of them feature labor-intensive and traditional
production with less hi-tech content, which reduces their
competitiveness. Technological transformation and related
research must be conducted. Many private enterprises, however,
fail to embrace new and high technology.
He said the success
of many enterprises lay in cooperating closely with universities
and research centers to industrialize their scientific results.
Some have established research and development centers for
developing long-term strategy.
Zhang added that
private enterprises lack initiative in participating in the
global market, which placed them in a passive position. Thus,
they might lose the market following the inflow of foreign
enterprises and their products in the near future.
Zhang urged all
private businesses to pay high attention to these problems
and adopt appropriate measures.
(CIIC by Guo Xiaohong)