Beijing – Headline: Economic Commentary: Building Confidence and Strength in ‘Stable Enterprises’

Not long ago, a representative from a household goods manufacturing company shared their success story: affected by external factors, the company’s warehouse once held nearly ten million yuan worth of unsold inventory, orders were scarce, and the financial chain was under severe strain. In this critical situation, a relief loan from a bank gave the company a new lease on life.

The current ‘stable enterprises’ policy is proving effective in helping businesses overcome challenges. The representative described it vividly: “This timely support not only allowed us to recover but also gave us the strength to plan our next steps for development and market expansion.”

The resilience of the economy stems from the collective response of millions of businesses facing pressure and challenges. When enterprises stabilize, employment, market vitality, and public livelihoods gain support, leading to more predictable economic expectations.

On April 25th, a key meeting emphasized the importance of “stabilizing employment, enterprises, markets, and expectations.” Among these, ‘stable enterprises’ holds a crucial position.

Stable enterprises mean a stable economy; active enterprises drive economic growth. What does ‘stable enterprises’ truly stabilize? It reinforces the confidence of countless businesses and the steady progress of China’s economy through challenges.

Currently, some companies face operational difficulties, order shortages, financial constraints, and even survival risks. At such critical moments, policy support can act as a ‘refueling station,’ ‘charging point,’ and ‘shock absorber,’ helping businesses navigate challenges more effectively.

Recent policy measures highlight stronger signals for ‘stable enterprises’—increased support for job retention and financing guarantees; targeted reductions and ‘precision support’ enabling businesses to access low-cost funding and tailored assistance; and multiple initiatives to inject financial vitality into small and micro enterprises.

‘Stable enterprises’ is not just about solving immediate problems but strengthening long-term foundations, enhancing resilience, and fostering self-sustaining capabilities to withstand future challenges.

One inspiring example is a Ningbo-based auto parts manufacturer. Facing external shocks and transformation pressures, the company leveraged policy opportunities to strengthen its supply chain—shifting from independent product development to collaborative order and risk-sharing with nearby suppliers, achieving integrated growth. Such partnerships enhance the robustness of local automotive industries.

A closer look at current policies reveals deeper intentions. Accelerating domestic and foreign trade integration allows businesses to diversify and better withstand market fluctuations; promoting large-scale equipment upgrades and consumer product innovation sustains enterprise vitality; introducing long-term funding mechanisms supports patient capital for business innovation. These measures aim to benefit, strengthen, and elevate enterprises.

Achieving long-term stability requires nurturing a thriving ecosystem, ensuring ample resources for businesses to flourish.

Across industries, businesses—large and small—share common aspirations and face unique challenges, yet they persist with hope and responsibility, striving in their respective fields.

This reflects the deeper logic of ‘stable enterprises’: cultivating fertile ground for growth, strengthening economic foundations, and enabling both established and emerging businesses to thrive together, forming a prosperous landscape of high-quality development.

Streamlining market regulations ensures smoother resource flows; refining market access lists expands opportunities for enterprises; implementing laws like the Civil Economy Promotion Act fosters fairer, more predictable business environments. Current reforms aim to make enterprises operate as freely as fish in water.

The effectiveness of policies lies in service details. Some regions have created online ‘policy marketplaces,’ using visual cues to remind businesses of deadlines and incentives—even auto-matching policies to eligible companies. Shifting from ‘businesses seeking policies’ to ‘policies finding businesses’ ensures better awareness and utilization of support measures.

With policy backing, businesses take action.

Recent interactions with enterprises revealed many inspiring stories: companies exploring new markets amid order declines; others carving out niche specialties to stand out in competitive industries. Their proactive approaches and innovative resilience are remarkable.

Long-term data is telling: In 2018, A-share listed companies exported 490 billion yuan; by 2024, this figure reached 940 billion yuan—a 92% increase over six challenging years. This growth reflects the synergy between supportive policies and business adaptability.

Every growing enterprise fuels China’s economic vitality; every hardworking entrepreneur deserves respect. Implementing stabilizing measures, achieving steady progress, and fostering confidence will ensure the healthy growth of millions of businesses, promising a brighter future for China’s economy.

Beijing

Beijing, the capital of China, is a historic city with over 3,000 years of history, serving as the political and cultural heart of the country for much of the past eight centuries. It is home to iconic landmarks like the Forbidden City, the Great Wall, and the Temple of Heaven, which reflect its imperial past and rich cultural heritage. Today, Beijing is a bustling modern metropolis that blends ancient traditions with contemporary advancements.

Ningbo-based auto parts manufacturer

Ningbo is a major hub for China’s automotive industry, home to numerous auto parts manufacturers that supply both domestic and international markets. These companies have grown significantly since the late 20th century, leveraging Ningbo’s strategic port location and industrial policies to become key players in the global supply chain. Many specialize in producing components like electronics, precision molds, and engine parts, supporting major automakers worldwide.

A-share listed companies

“A-share listed companies” refer to businesses incorporated in mainland China that trade on Chinese stock exchanges, such as the Shanghai or Shenzhen Stock Exchange. These companies issue shares denominated in yuan (RMB) and were historically only available to domestic investors, though limited access has since been granted to qualified foreign investors. A-shares represent a key segment of China’s financial market, reflecting the growth of its economy since stock exchanges reopened in the early 1990s following economic reforms.

Civil Economy Promotion Act

The **Civil Economy Promotion Act** is a legislative framework aimed at fostering social and solidarity-based economic activities, often supporting cooperatives, non-profits, and ethical businesses. Originating in countries like Italy (where similar laws inspired the concept), it seeks to prioritize community welfare, sustainability, and democratic participation over pure profit. The act typically encourages collaboration between public institutions and civil society to strengthen local economies and social inclusion.