Beijing, May 25th – Headline: Xinhua Economic Commentary: Building Confidence and Strength in ‘Stable Enterprises’ Not long ago, a responsible person from a household goods manufacturing enterprise shared the joy of development with reporters: affected by the external environment, the company’s warehouse once accumulated almost ten million yuan worth of products, orders were fruitless, and the capital chain was in urgent trouble. In a desperate situation, a relief loan from a bank gave the company a new life.
With full effort to help enterprises resolve difficulties, the current ‘stable enterprises’ policy is showing its effectiveness. The words of this responsible person were vivid: ‘This timely ‘rain’ not only allowed us to catch our breath, but also gave us the opportunity to take a deep breath and have the strength to plan for the next steps of development and market expansion.’
The resilience of the economy has always been the collective answer from millions of operating entities facing pressure and challenges. When enterprises are stabilized, there is support for employment, market dynamics, livelihood reliance, and stable expectations can be foreseen.
On April 25th, the Central Political Bureau Conference emphasized ‘working to stabilize employment, enterprises, markets, and expectations.’ Among the ‘four stability’, ‘stable enterprises’ occupy an important position.
Enterprises’ stability leads to economic stability, and when enterprises are active, the economy thrives. What does ‘stable enterprises’ stabilize? It’s the confidence of billions of businesses and the determination of the Chinese economy to proceed steadily in the wind and rain.
Currently, some enterprises face operational difficulties, order pressure, tight capital, and even are at the brink of survival. At critical moments, policy assistance can function as a ‘gas station’, ‘charging station’, and ‘shock absorber’, guiding enterprises to better navigate challenges.
Recent important policy measures sorted out show more apparent signals of ‘stable enterprises’— increasing support for businesses in terms of stable jobs and financing guarantees; through marginal reductions and ‘precision irrigation’, enterprises can enjoy benefits such as low-cost funding and targeted blood supply; and several measures were launched to inject more financial vitality into the development of small and micro enterprises…
‘Stable enterprises’ require not only solving imminent difficulties but strengthening the foundation for development, reinforcing the muscles and bones of enterprises, and assisting them in achieving ‘self-hematopoiesis’ capability, cultivating storm-resistant resilience and capability.
The story of a Ningbo automobile mold casting company’s impressive story left reporters deeply impressed. Under external shocks and transformation pressure, the company seized the policy opportunity to strengthen and complement the supply chain, from independently developing products to jointly sharing orders and risks with surrounding supporting enterprises, realizing chain development. More of such ‘hand-in-hand’ efforts give local auto accessory industries more solid capabilities.
Careful observation of the current series of policies reveals more profound intentions. Accelerating the integration of domestic and foreign trade allows enterprises to ‘walk multiple paths’, better withstanding market fluctuations; promoting a new round of large-scale equipment renewal and consumer product upgrade continues to stimulate enterprise vitality; introducing various medium and long-term funds into the market, using patient capital to serve enterprise innovation and development… These policies’ implementation is more conducive to benefiting, strengthening, and enhancing enterprises.
Achieving a higher level and longer-term ‘stability’ also requires continuously creating a good ecosystem, letting sunlight, rain, air, and moisture enrich the majority of operating entities.
Located among thousands of industries, enterprises, there are ‘big players’, small business owners, shared expectations, and individual hardships, maintaining hope and responsibility, working diligently in their piece of heaven and earth.
This is the deeper governance logic of ‘stable enterprises’: cultivating a fertile ground for development, solidifying the economic root system, allowing towering trees and saplings to grow together and prosper, thus forming a high-quality development prosperous forest.
Clearing the rectification market to allow smoother factor resource flows; negatively adjusting the market’s negative list to ‘slim down’ further, giving enterprises more expansive areas to explore; implementing the Civil Economy Promotion Law to create a fairer and more predictable environment for enterprise development with rule of law means… Currently, a series of genuine measures and realities are advancing the optimization of the business environment, aiming to make enterprises more like fish in water.
The temperature of policies is reflected in the details of the services. Some places have built online ‘policy supermarkets’, using different colored markers to remind enterprises of the deadlines and award amounts of incentive policies for application, even allowing enterprises to ‘automatically match’. Transforming from ‘enterprises seeking policies’ to ‘policies seeking enterprises’ aims to make enterprises not only aware of policies but also utilize them effectively.
Policies have support, enterprises take action.
In recent interviews with enterprises, reporters saw and heard many stories: Encountering a decline in orders, striving to explore diversified markets, breaking through a new path; facing industry competition, deeply cultivating niche areas to create ‘new exclusivity’… Many enterprises take initiative, rise to challenges, and their resilience in breaking through difficulties in innovative development is touching.
A set of longer-term data is impressive: In 2018, listed A-share companies exported 490 billion yuan, and by 2024, it reached 940 billion yuan, an increase of 92% over six years of continuous challenge, nearly doubling. The jumping numbers are the interplay between policy temperature and enterprise resilience.
Every upward-growing enterprise carries the vitality of the Chinese economy, every hardworking entrepreneur deserves respect and cherishing. Implementing ‘stable’ measures, achieving ‘stable’ results, cultivating ‘stable’ expectations, billions of operating entities develop healthily and exuberantly, the future of China’s economy will inevitably be brighter.
By Xinhua reporters Yu Jiaxin, Liu Hui
