Xi Jinping calls for initiatives to promote business innovation and support small and medium-sized businesses.
The Chinese president, Xi Jinping, has urged action to encourage business innovation and more specialized, innovative small and medium-sized enterprises (SMEs). The remarks were made by Xi, who is also the chairman of the Central Military Commission and the general secretary of the Communist Party of China (CPC) Central Committee, in a letter of congratulations to a conference about the growth of these businesses that began on Thursday in Nanjing, Jiangsu Province, in east China.
The Chinese president expressed his hope that small and medium-sized enterprises (SMEs) can play a bigger role in enhancing the stability of industrial chains and supply chains and advancing economic and social development. He noted that SMEs are a significant force in promoting innovation, boosting employment, and improving people’s quality of life. To foster more SMEs with high growth potential, cutting-edge technology, and a strong competitive edge in the market, he urged officials at various levels to create a favorable environment for the development of SMEs, strengthen support for them, help them gain confidence, concentrate on efforts to promote their business innovation, and improve the protection of intellectual property rights. He made the comments in a letter of congratulations to a symposium on the growth of such businesses that began on Thursday in Nanjing, Jiangsu province. Xi expressed his hope that “little giant” businesses will play a more significant role in supporting the stability of the country’s industrial chains and supply chains and advancing economic and social development. He noted that SMEs serve as a significant force for bolstering innovation, expanding employment, and improving people’s livelihoods. The term “small giant” describes SMEs in China that specialize in specialized markets, hold a sizeable market share, and have a significant capacity for innovation and core technology. China has put a lot of effort into enhancing its technology edge in sectors that are crucial from a strategic perspective. Tuesday’s Central Commission for Comprehensively Deepening Reform meeting, which was presided over by Xi, focused on enhancing the new system of nationwide resource mobilization for significant field achievements in core technologies. Minister of Industry and IT Jin Zhuanglong stated at the conference that more work needs to be done to strengthen laws and regulations and create pertinent policies to promote business innovation and make it easier for SMEs to obtain financing while also stepping up assistance to help SMEs overcome challenges. According to the ministry, China aims to foster 10,000 “little giant” businesses during the 14th Five-Year Plan (2021–25) period, marking an important strategic step in enhancing the robustness of the manufacturing chain and sparking the vitality of SMEs in the vast industrial economy of the country. According to a report released on Thursday, China has so far nurtured 8,997 of these businesses, which have taken part in the development and revision of more than 13,000 industrial standards in China. According to the report, their operating revenue increased by 31.5 percent annually to 3.7 trillion yuan ($532 billion) in 2021, surpassing by 11.6 percentage points the income growth rate of SMEs with annual incomes of at least 20 million yuan. According to Li Xianjun, an associate researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, “little giant” businesses, which have cutting-edge technologies and can solve some bottleneck issues, are becoming more and more important in enhancing the stability of the country’s industrial chains and supply chains and helping China become a manufacturing powerhouse. Beijing’s “little giant” company Beijing Eyecool Technology Co.’s chief strategy officer, Wang Shuqi, expressed her excitement at the government’s commitment to fostering business innovation and supporting innovative SMEs.
Xi’s letter was read aloud during the opening ceremony of the conference, which was organized by the Ministry of Industry and Information Technology, by Vice Premier Liu He of China, who is also a member of the Political Bureau of the CPC Central Committee.