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Jilin Province Private Economy Achieved Large Development
2013/10/10     Source:

Since 2013, Jilin Province's economic development has had many highlights and the private economy is the most dazzling one.

Data showed Jilin Province's private economy achieved main business revenue of RMB 1.25559 trillion in the first half of 2013, growing 20.1% over the last year, the eighth place by growth, leaping four places over last year.

Added value of the private economy accounted for 53.6% of the province's GDP, up 2.2 percentage points over the last year;

There were 11,219 private enterprises in the province, growing 13% over the last year, up 4.5 percentage points over the growth in the same period of last year; among them, the number of enterprises with main business revenue of above RMB 100 million grew 36% over the last year; the number of enterprises with main business revenue of above RMB 1 billion grew 37.5% over the last year.

The province's private investment growth hit 27.7%, 2.7 percentage points higher than the province's investment growth; the private investment accounted for 73.2% of the province's fixed-asset investment.

The private economy is becoming a new beacon of hope of Jilin's economic development.

As 2013 New Year's Day has just been over, Party Secretary of the province's each city (prefecture) committee and county (city and district) committee simultaneously received a personal letter from newly-appointed Secretary of provincial Party Wang Rulin "to Party Secretary of each city (prefecture) committee and county (city and district) committee, please combine with local realities, conduct researches on accelerating developing the private economy, sum up experiences, especially find questions and make recommendations, and report to the provincial Party committee before the Spring Festival". The letter was very short, with only a few dozen words but brining along an early spring atmosphere. It was heavy-weighted as it was a signal of a major decision issued by the provincial Party committee.

Once, the "Venture to the Northeast" spirit created by the people of Jilin, who worked hard and were endured and brave, left a deep impression to all the people. But now, once mentioning the private economy, people will first think of the Yangtze River Delta, the Pearl River Delta and other coastal developed regions. Although Jilin's private economy is developing rapidly, it still lags behind over developed provinces as the total economy is not large enough, the level is not high enough, the innovative ability is not strong enough and the market system development is inadequate.

 How to do this great article of private economy well? How to play this hope card of Jilin of private economic development well?

On the morning of February 21, 2013, the provincial Party committee held a standing committee meeting to study the deployment of the work to highlight the development of private economy, discussed the "Opinions from CPC Jilin Provincial Party Committee and Jilin Provincial People's Government on Highlighting the Development of Private Economy" and clearly put forward the overall goal "to double the main business revenue, added value and number of players of the province's private economy by 2017 over 2012".

The "Opinions" consisted of 40 articles and covered all aspects of the province's private economic development, always showing the new provincial government's sense of mission to be responsible and solve problems for the people and determination and tolerance to benefit the people.

Then, on February 25, Jilin Province's meeting to highlight the development of private economy drew the concern of the province's all walks of life. The main venue, Jilin Provincial Government plenary meeting room, was totally occupied and 118 sub-venues, located in the province's nine cities (prefectures) and more than 40 counties (cities and districts), attracted nearly 20,000 people to watch and listen via video.

"Our province still has a gap with developed provinces mainly because the private economic development lags behind. The private economy 'indeed affects the whole province'. To grasp the private economy refers to grasping development, grasping industrialization, urbanization and agricultural modernization, grasping reform and opening up and grasping enriching the province and the people", said Secretary of provincial Party Wang Rulin.

"To promote the private economy to accelerate development, it is essential to create a fair competitive environment and increase the policy support. Jilin Province should increase the service support and create a support-enterprise-to-grow environment", Governor Bayin Chaolu pointed out the important and difficult points for Jilin Province to develop the private economy.

To enrich both the province and people is the desire in the hearts of 27 million Jilin people. The great development of private economy is the way and this strategic enhancement in the innovative level sounds the number of Jilin to realize a new development.

The private economy is the most dynamic cell, an important subject of the market economy, the backbone to promote scientific and technological innovation and an important support of the Jilin economy. For highlighting the development of private economy, how to change into a program of action from a concept and become a number of practical policies from a program of action?

A great debate "emancipating the mind, reform and innovation, governing the environment, optimizing services and highlighting the development of private economy" let the province's cadres and masses have a more clear understanding of the characteristics of the periodic stage Jilin is at.

Polices create the environment and excellent services refer to an excellent environment and condense forces for the overall situation. On March 26, the provincial department of industry and information technology and the provincial department of finance jointly issued the "Notice on Doing Well in Declaration of Special Funds in Provincial SMEs and Private Economic Development in 2013".

The provincial Party committee organization department issued "17 opinions" to support the development of private economy: build a platform for talents to make innovation and pioneer business and support private enterprises to build R & D centers and talent bases; specific measures put forward by the provincial court to highlight the development of private economy provide an effective judicial protection: allow private enterprises to afford lawsuits without money, win with justice on their side and execute fast while winning.

The province should support all-people pioneering and serve the private economy. The provincial trade and industry bureau achieved four major breakthroughs in broadening access areas and conditions, including simplifying procedures for registration and approval, and implemented "five services", including policy optimization; the provincial department of transportation issued the "Implementation Views from Jilin Province Department of Transportation on Highlighting the Development of Private Economy"; the province's public security organs named 2013 to be "soft environment construction-to-serve enterprises year".

All localities and departments responded positively. Changchun, Jilin and other cities (prefectures) respectively set up or added special funds for the private economic development; the procuratorate and bureau of justice of Changchun City respectively established 30 professional enterprise-benefiting legal service teams.

How to achieve a fast and great development? For a time, the private economic development boom was agitating, spreading and extending in the land of Jilin and the province's cadres and masses actively joined in the main battlefield of fast and great development of the private economy.

The private economy of Jilin Province, wanting to achieve a fast and great development and realize a complete change, should make innovation that is the best entry point; to make breakthrough is the best touchstone; to pioneer business is the largest origin of force.

 To make innovation, the province should continue to strengthen measures and overcome obstacles is the important proposition running through the private economic development of Jilin Province.

"Further unify the thinking, take highlighting the development of private economy as a breakthrough to promote a new round of reform and opening up and spend full efforts to promote Jilin Province to achieve a rapid and great private economic development", said provincial Party Secretary Wang Rulin.

Governor Bayin Chaolu said "for developing the private economy, the most basic part is to produce market economy players and the most fundamental measure is to spend efforts in opening, loosening and deregulating".

Make innovation in the policy support. Jilin Province walked in front nationwide with the take-the-lead courage.

Jilin Province broke down barriers and be "bold and resolute": "deregulate" and "get licenses before approval" in industrial and commercial registration to benefit 9,573 companies in the first half;"let go" and "three zero" services, zero down payment in registered capital, zero charges in industrial and commercial business and zero barriers in market access, benefited more than 90,000 business individuals and enterprises and saved costs of RMB 305.421 million; "industrial and commercial capital verification E-line" comprehensive information platform helped enterprises to save costs of above RMB 100 million.

In the private economic development platform, Jilin Province is good at not only seizing opportunities, but also enlarging opportunities timely.

Take making innovation in tax policies as an entry point at a proper time to further stimulate the market dynamic.

"Newly-established companies exempt from land use tax and property tax in the first two years since tax registration, which has realized profit concessions of over RMB 600 million." This can be described as an unprecedented innovation from the national perspective.

To make a breakthrough in hard-to-finance and expensive-to-finance has become a topic Jilin Province cannot ignore in achieving a fast and great private economic development.

"This is the first bank loan got since the establishment of our company. I cannot think small enterprises including our company are included into the small and micro enterprises guarantee company service system so that we can get convenient and efficient services", said general manager of an animation company with emotion, adding "the money is absolutely timely". From 2013 on, Jilin Province set up small and micro enterprise guarantee companies to specialize in providing guarantee for financing of small and micro enterprises, which can guarantee financing of RMB 3 billion to RMB 5 billion annually. The measure has built a growth stage for small, medium and micro enterprises.

Activate "sleeping capital" to assist rural finance. Jilin Province took the lead to launch a land revenue-for-guaranteed loan financing mode, which is a bridge between financial institutions and farmers with a new mode, simple procedures, preferential interest rate and controllable risks. For a time, "Jilin mode" has spread across the whole country, gathered the concern from the whole country and lit a lamp for the nationwide rural financial innovation.

"This is a 'golden key' to get rich." Since the launch of the land revenue-for-guaranteed loan financing mode in Lishu County since last August 20, 60 counties (cities and districts) in Jilin Province have set up 42 property financing agricultural development companies by August 20, 2013, which totally granted 7,464 loans worth RMB 296 million.

Plant "nine industrial trees" and "pioneer and expand" with an innovative thinking.

On August 9, at the province's industrial cluster engineering work promotion, the provincial department of industry and information technology for the first time prepared and issued the "Jilin Province Leading Industries Industrial Chain Design" to introduce into the "industrial tree" concept and select nine leading industries, including auto and petrochemical, as the main content of the industrial chain design. This is an innovation planned and prepared to promote an industrial cluster development.

"It is vivid and intuitive, of which the inadequacy of Jilin's industrial development, industrial structure adjustment and industrial upgrading can be apprehended at a glance." Today, the nine industries are taking root and growing in the province's 85 characteristic industrial parks.

Enterprises are main players of the market economy and private entrepreneurs promote product and industrial upgrading by applying new technologies, which is the fundamental requirement to achieve a fast and great private economic development. Jilin Shenhua Group adhered to innovation and developing products with independent intellectual property rights, developed a biopharmaceutical company to be strong and embarked on a road of innovative development and insisting on production and R & D. Kang'ai injection, researched and developed by Shenhua Group's subsidiary Changbai Mountain Pharmaceutical Group, has entered the national medical insurance catalog. In April 2013, the fourth project of "Changbai Mountain Pharmaceutical", a new production line, officially passed the GMP certification so that the production capacity increased by four times. Last year, Shenhua Group acquired Tonghua Yusheng Pharmaceutical and focused on developing large Hongjingtian injection with an independent intellectual property right. Now, Shenhua Group is building a new production line that is expected to pass the national GMP certification within this year. These two products with independent intellectual property rights can bring annual sales revenue of more than RMB 3 billion for the company.

The private economy is the livelihood economy. From early March to mid-June, the number of private enterprises in Changchun City increased more than 6,000 monthly on average, which was never seen before; the number of employees in the private economy hit 1.95 million, accounting for 50% of the city's total employees; the fourth entrepreneurship and employment fair promoted 3,789 entrepreneurial projects.

For a time, a thousand sails compete and meet to form a tide and the whole province is full of a boom of forging ahead. From urban to rural areas, from organs to grassroots and from cadres to "village leaders", they had a uniform thought and formed a concerted force to promote all-people pioneering.

The province was full of new opportunities and achievements brought by highlighting the development of private economy.

In the first half, signed 4,173 projects at the bank-enterprise-insurer cooperation loan signing meeting, with contractual loans of RMB 30.05 billion, 99% of which have been implemented by far; property financing registration and trusteeship trade companies' guaranteed loan pilots totally granted RMB 240 million loans to 6,206 rural households; the province's SME public service platform achieved inter-connection with 17 windows to bring along more than 500 social service agencies to provide services for SMEs, serving 25,000 small, medium and micro enterprises and for more than 50,000 person times in the first half.

"Achieve high-level organization, high-grade investment solicitation and professional matchmaking." Jilin Province wrote a series of magnificent pictures in "investment solicitation", "technology solicitation" and "intelligence solicitation".

The delegation of Jilin Province went to Hong Kong to carry out economic and trade exchanges and cooperation and successfully signed 57 projects with a total investment of RMB 41.9 billion; actively carried out "industrial project negotiations" and negotiated 44 projects with 13 SASAC enterprises including Aluminum Corporation of China and China Railway Construction Corporation; organized "chamber of commerce for investment solicitation". The provincial government convened a private enterprise-chamber of commerce responsible people seminar, at which more than ten chambers of commerce of Shanghai, Guangdong, Zhejiang, Sichuan and Chongqing and other places participated, and conducted "100 external companies-to-Jilin". In the first half, actually-used foreign capital hit USD 3.409 billion, growing 16.99% over a year earlier; actually-used external capital hit RMB 220.364 billion, growing 26.5% over a year earlier.

Quality enhancement accomplishes a feat. To attract talents, especially high-level pioneering talents, technical talents and professional managers, to join in private enterprises has become a non-fading landscape in the province's private economic development process.

Changchun, Jilin, Tonghua and other cities and prefectures swarmed to introduce into talents relying on locally-settled large projects. Tonghua has successfully introduced into over ten large projects with respective investments of above RMB 1 billion, including Yiwu International Trade City, CR Breweries and Eurasia, and introduced into 865 talents in all kinds relying on these projects; a "provision to encourage organ-cadres to lead in pioneering" spurred a tide in Tonghua so that 1,091 Party and government cadres have led in founding and pioneered private enterprises early or late.

In the call of the mission, Jilin embarked on the only way of industrial cluster development and asking for efficiency from scale.

Today, Changchun is striving to build echelon-structure RMB 100 billion, RMB 10 billion and RMB 5 billion industrial clusters and 60 small and medium private enterprise clusters, including auto and parts, have been formed.

The province's park-located characteristic industrial cluster construction is actively promoted. Up to now, the province has arranged special funds of RMB 47.8 million to support public service platform construction and infrastructure repair and maintenance for 45 park-based projects.

The soft environment for private economic development attracted chambers of commerce of other places to "accomplish great deeds" as the chambers of commerce of Guangdong, Jiangsu, Zhejiang and Henan invested more than RMB 16 billion building four industrial clusters in Nong'an, Changchun High-tech Development Zone, Qianguo and Changde New Area.

From theoretical interpretation to practical exercises and from shallow leveraging to deep involvement, Jilin Province is increasing efforts to cultivate qualified market players to all "dead corners".

In the first half, 70 Jilin Province-based private enterprises expanded the market with "professional, fine, special and new" products at three "special exhibitions"; Jilin's professional, fine, special and new products were promoted at three platforms, rongxintong.com, alibaba.com and Baidu Xiang Plan, and the SME network marketing system is taking shape.

At the foot of Changbai Mountain, industry insiders gathered, conducted high-end dialogues, had in-depth exchanges and sought a common development. Recently, "2013 China Private Economic Development (Changbai Mountain) Forum", co-sponsored by All China Federation of Industry & Commerce and the provincial government, was held at Fusong County Changbai Mountain International Resort. Over 100 experts and well-known private entrepreneur from all places of the country had an in-depth exchange and discussion on the theme "deepening reform and promoting the private economic development". All China Federation of Industry & Commerce Vice Chairman Zhuang Congsheng said "we see business development opportunities once coming to Changbai Mountain. Jilin is indeed a fertile ground for business investments and this place has its own late-mover advantage and we must look for good opportunities and make investments in this place. "

The province's private economy is entering a fast-development lane. To vigorously develop the private economy lets the Jilin people combine the traditional "Venture to the Northeast" spirit and current innovative pioneering in the new historical period, which surely will glow the huge energy to revitalize Jilin and accelerate development.

Jilin Province's private economy has taken a solid pace in the fast and great development, but the pace of exploration does not stop for a moment. Standing at a new starting point, the Jilin people are tackle tough, forge ahead and move forward with the power of innovation.

The flower of Jilin Province's private economy will bloom more beautifully.

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