Xi Jinping: Promote the private sector economic and technological development zones

The report on the work of the Chinese government this year 2023 mentioned that China will encourage and support the private sector and private businesses in growing and expanding, and support micro, small and medium-sized enterprises and self-employed individuals in business development. We have noticed that you have also paid attention to some topics such as promoting employment and the development of the real economy. There are China’s emphasis on the private sector, as we are witnessing many examples of the development of private enterprises in China in recent years with different various opportunities and changing policies brought to the private enterprises in China.

The meeting of the two sessions 2023 and the welfare of the Chinese people through encouraging the private sector and openness, as follows:

 The Chinese government will be keen, during the meetings of the two sessions this year, to implement many measures and policies for the interest and welfare of the Chinese people in the first place, such as:

Developing plans to address and revive the Chinese economy during the coming period in light of the travel ban, and the closure of the borders of China and the world to control the “Covid-19” pandemic.  Chinese companies and factories effectively to overcome the negative effects of the epidemic.

A mechanism and plans to revive the manufacturing sector in factories and companies, which constitute about a third of the Chinese economy, will be discussed.  Which temporarily stopped working after the outbreak of the epidemic.  The deputies of the National People’s Congress of China will be keen to address mechanisms, programs and plans for implementing a comprehensive national reform package in the sectors of the economy, market, governance, health and others, so as to aim at strengthening policy, governance and institutional systems through the system of giving loans, activating the system and tool for financing projects, and eliminating  Unemployment, according to a well-thought-out plan to restore economic activity after Corona virus.

The issue of combating unemployment in the countryside will be discussed by strengthening the relationship between poverty alleviation and rural revitalization, through: Comprehensive encouragement to develop rural industries, talents, culture and the environment in the countryside as a guarantee to encourage the poor to integrate into society and combat unemployment.

The deepest economic reforms to support growth, which will be discussed during the meetings of the two sessions during the coming period, are: helping small and micro companies, reducing taxes and fees, and promoting employment of key groups such as university graduates, migrant workers, and people with work difficulties.

 This confirms the Chinese state’s keenness to recover quickly after the pandemic.  Here, China demonstrated to the world its eagerness to work to serve it, with the Chinese leadership of President (Xi Jinping) emphasizing the community of a shared future, and the idea of solidarity and cooperation together.  China has succeeded in overcoming these difficulties and pressures, through:

The Chinese President (Xi Jinping) proposed and confirmed the proposal and discussion of the Health Silk Initiative, which is the initiative launched by the Chinese President (Xi Jinping) in 2017, as an extension of the Chinese Belt and Road, and the outbreak of the virus came as an appropriate circumstance to discuss this initiative again.

The outbreak of the epidemic was a valuable opportunity for China due to the strength of the company (Huawei) in front of the world, and the ability of the Beijing government to discuss aspects of digital transformation around the world, and to activate the digital transformation initiative and the digital silk road, such as: artificial intelligence technology and the fifth generation of information and communication networks, which proved  Its effectiveness during the epidemic period, and contributed to its eradication in Wuhan, China.  Especially in light of the ban imposed on the Chinese company, Huawei, as a result of the United States’ fear of losing its economic position to China, and China’s desire to confront Washington’s technological monopoly, which owns many giant companies, such as: Google, Apple, Facebook, and Amazon.

   Here will come the keenness of the Chinese provincial deputies during the meetings of the two sessions or sessions 2023 before the world to ensure the achievement of stability in the country as a top priority for China, and an opportunity to declare adherence to stable economic policies, social and development policies, especially in areas severely affected by the epidemic, and to ensure that the basic needs of Chinese society are met after  epidemic.  It will also be emphasized that China will continue its efforts to affirm in active efforts to deepen supply-side structural reform, and to ensure reasonable growth and steady improvement of the economy, especially in the post-corona world.

  We will find that through the previous plans for the meetings of the two sessions or sessions, China and the leaders of the ruling Communist Party will succeed in laying out broad lines to ensure the activation of the Chinese strategy of achieving internal self-sufficiency, in light of the state of conflict with the United States of America.  China has also succeeded in developing the main features to help its people once again rise and recover, represented in: China’s fighting the “three difficult battles”, which are: its goal to reduce poverty, effectively prevent and control financial risks, and the general improvement in the environment and ecosystem.

The results of the meetings of the two sessions 2023 showed the importance of strengthening private economic institutions and the private sector in the development of the Chinese state by paying attention to the (economic and technological development zones at the national level), which are special areas in China that depend on knowledge-intensive and technology-intensive industries, and in which certain preferential policies and procedures are applied. Since the implementation of the reform and opening-up policy, China’s industrialization has progressed rapidly, and the economic and technological development zones at the national level have been an important vector for attracting investment and earning foreign funds from exports. They are also the focus of innovation in industries and attracting global investment in various regions. The economic and technological development zones at the national level are considered one of the most representative poles for the growth of the local economy.

 Here, the reports of the meetings of the two sessions this year 2023 referred to the statement of the Chinese Ministry of Commerce regarding the data related to assessing the level of comprehensive development of the economic and technological development zones at the national level in China for the year 2020. Which shows that there are 218 economic and technological development zones at the national level in China, which achieved an increase in the macroeconomic field, it has also improved its structures, increased its efficiency and quality, strengthened its pioneering and open role, and played a greater role in shaping a new development pattern.

The national economic and technological development zones at China are important regional functional sites designed for innovation and development of Chinese industry, and play a leading role in the development of the domestic economy, especially the development of the open economy.  Economic and technological development zones at the national level enjoy significant advantages, whether in the growth of industrial size, technological level, ability to innovate, and level of openness, or in specific indicators such as growth rate, quality, and others.

According to the reports of the National Development and Reform Commission of China, the private sector constitutes an important part of China’s economic development, with the private sector contributing more than 60% of GDP, more than 50 percent of total tax revenue and participating in more than 80 percent of labor employment in urban areas. Along with more than 70 percent of the technological innovations and 90 percent of the market enterprises in China.

 This was confirmed by Chinese President “Xi Jinping” in his political speeches by emphasizing his country’s support for the private sector and urging him to appropriately direct the healthy and high-quality development of the private sector.  This was also confirmed by President “Xi” during his visit to national political advisors from the China Democratic Association for Nation Building and the All-China Federation of Industry and Commerce, who are attending the first session of the 14th National Committee of the Chinese People’s Political Consultative Conference.

The private economy In China also plays a stronger role in creating job opportunities within the country and raises the banner of stimulating and encouraging innovation, by providing more than 80 percent of job opportunities and contributing to more than 70 percent of technological innovation and new products in the country. Private companies create over 90 percent of new jobs within China.

The results of the two meetings of the 2023 sessions emphasized the importance of the private sector to confront the American obstacles.  With Chinese President Xi Jinping confirming his quest to rely on the Chinese private sector to overcome the economic challenges facing his country, including external pressures from countries led by the United States.

 During the Chinese President Xi Jinping’s attendance at the meeting of the Chinese People’s Political Consultative Conference, he stressed that China has faced, over the past few years, “attempts to contain and comprehensively block Western countries led by the United States, which has posed unprecedented challenges to China’s development”. So President Xi stressed the importance of the Chinese private sector.  Chinese President “Xi Jinping” stressed that China should lead a healthy and high-quality development of the private sector, in addition to enhancing trust among businessmen, calling on companies to enhance their innovative capabilities and play a greater role in order to achieve China’s technological independence, adding that Beijing will  Supporting online platform companies to create jobs, expand consumption and compete globally.

 Chinese President “Xi” also confirmed that the business climate for the private sector must be improved, stressing the need for more effective measures to support small and medium enterprises, pointing to the problems that these projects faced as a result of the emerging Coronavirus pandemic and the slowdown in the economy, adding that China will leave the private sector plays an important role in stabilizing employment and enhancing income.

Dr.Nadia Helmy
Dr.Nadia Helmy
Associate Professor of Political Science, Faculty of Politics and Economics / Beni Suef University- Egypt. An Expert in Chinese Politics, Sino-Israeli relationships, and Asian affairs- Visiting Senior Researcher at the Centre for Middle Eastern Studies (CMES)/ Lund University, Sweden- Director of the South and East Asia Studies Unit