Focusing on High-Quality Development of Industrial Economy, “Private Enterprises Entering Guangxi” Is at the Right Time

（Written by Huang Lixia / Translated by Chen Zhiying）A favorable business environment is helpful to attract business. In recent years, Guangxi focuses on the implementation of “central enterprises, private enterprises and enterprises in the Greater Bay Area entering Guangxi” (namely “three kinds of enterprises entering Guangxi”), strengthens market development, and promotes investment. Therefore, famous enterprises continue to pour in, and the construction of major projects also accelerates. Among them, “private enterprises entering Guangxi” investment promotion activity makes remarkable achievements.

In December 2020, jointly held by the All-China Federation of Industry and Commerce and the People’s Government of Guangxi Zhuang Autonomous Region, the Conference of National Well-Known Private Enterprises Boosting the “Building of a Splendid Guangxi and Realizing the Rejuvenation Dream” (hereinafter referred to as the “private enterprises entering Guangxi” conference) was held in Nanning, Guangxi, bringing the “three kinds of enterprises entering Guangxi” to a new climax. During the conference, private entrepreneurs all over the country focused on Guangxi’s development and praised its business environment and prospects.

To realize the rejuvenation dream together, “private enterprises entering Guangxi” is at the right time

Since the implementation of the “private enterprises entering Guangxi”, as of December 15, 2020, Guangxi has signed contracts with a total investment of RMB 1011.8 billion yuan. The fields cover modern agriculture, new energy vehicles, electronic information, high-end equipment manufacturing, metal and green chemical new materials, big health, culture and tourism, and other emerging industries.

Nearly 500 enterprises under the Executive Committee of All-China Federation of Industry and Commerce, 100 model private enterprises fighting against the epidemic, and more than 60 enterprises signing contracts attended the conference, at which held the signing ceremony and commencement ceremony. 60 cooperation projects with a total investment of RMB 208.3 billion yuan were signed. 28 projects with a total investment of RMB 213.9 billion yuan were launched. Special promotion activities themed on Guangxi high-quality industry and digital economy, China (Guangxi) Pilot Free Trade Zone, the New International Land-Sea Trade Corridor, Guangxi culture and tourism, and health industry were held at the same time.

“Private enterprises entering Guangxi” activity was held once in 2013 when Guangxi undertook the 11th All-China Federation of Industry and Commerce Congress. Projects and enterprises settled down at that time played an important role in guiding and promoting Guangxi to cultivate new industries and explore new economic growth points. Seven years later, the “private enterprises entering Guangxi” conference is once again held at a critical moment. It is a time when the building of a moderately prosperous society in an all-round way is coming to a successful end and the building of a socialist modern country in an all-round way is starting. Lu Xinshe, Secretary of the CPC Guangxi Committee and Director of the Standing Committee of the People’s Congress of Guangxi Zhuang Autonomous Region, said the holding of the “private enterprises entering to Guangxi” conference is not only a practical action to implement the important directive given by Chinese President Xi Jinping, but also a pragmatic move to give full play to the advantages of the private economy in building a new development pattern.

Enterprises have confidence in investment with favorable business environment

Over the past two years, Guangxi has carried out in-depth actions to optimize the business environment, making it favorable day by day. According to the Research Report on Guangxi’ Business Environment in 2020 issued by the Research Institute of China Council for the Promotion of International Trade, the business environment of Guangxi in 2020 ranks at top level in China, with indicators such as setting up enterprises, registering real estate, paying taxes, and managing bankruptcy reaching the first-class level in China, and indicators such as protecting small and medium-sized investors, cross-border trade, executing contracts, and obtaining credit approaching the first-class level in China.

A good business environment and great development opportunities make private enterprises in Guangxi more confident.

“Through communication with Guangxi Federation of Industry and Commerce and some local governments, I feel that the Guangxi government cares about and attaches importance to the business environment. Guangxi boasts obvious location advantages, sufficient labor force, many preferential policies, which give more confidence to enterprise investment,” said Li Haixing, Chairman of Jiangsu Kendiya Company, who first came to Nanning, Guangxi, in an interview with the reporter from China-ASEAN Panorama. He also added that the new material industrial park invested by his company in Vietnam was under construction, with an investment of RMB 700 million yuan, the market of which was North America. Since Guangxi boasted a favorable business environment, therefore, Jiangsu Kentiya Company decided to put industrial supply chains in Guangxi and then made field visits to Chongzuo, Beibu Gulf Port, and other places. And because Guangxi served as an important gateway connecting the Belt and Road, thus he wanted to integrate some industrial chains here, which would be conducive to arranging the whole industry chain, promoteing enterprise development, and making internationalization better and better.

“Baise has become a national key development and opening pilot zone, and Jingxi functions as the pilot zone of Baise. Therefore, investment in Jingxi will be beneficial to the construction and promotion of the project in the future,” said Ding Jianqi, Head of Xiangtan Electrochemical Group Co., Ltd. It is said that as early as 2005, the company has built a new energy industry base in Jingxi, Baise, Guangxi, with a total investment of nearly RMB 2 billion yuan. And the company was going to invest another nearly RMB 2 billion yuan in the future. “At the beginning, we were interested in the manganese resources in Guangxi. With the development of our company and Guangxi, especially with the support of Guangxi government and relevant departments, and the optimization of the local business environment in recent years, we pay more attention to Guangxi’s future development,” said Ding Jianqi. “Guangxi is close to ASEAN. In the future, there will be more room for the development of new energy material industry in China-ASEAN market.”

Enhance location advantage and inject new energy into the agglomeration of leading enterprises

Striving for the 14th Five-Year Plan, Guangxi vigorously pushes industrial transformation and upgrading, constructs cross-border industrial supply chains, and promotes economic development in the post-epidemic era, which provides great opportunities and broad stage for entrepreneurs who are optimistic about Guangxi to invest and start a business.

“Guangxi has good location advantages and convenient transportation. Besides, Guangxi has introduced many policies in recent years, including tax reduction and exemption, which has provided convenience for enterprises and increased their confidence,” said Wang Jianzhong, General Manager of Zhejiang Taizhou Zhaowang Machinery Co., Ltd. It’s said that Guangxi Zhaowang Auto Parts Manufacturing Co., Ltd. has built an auto parts industrial park in Xing’an County, Guilin. At present, phase Ⅰ has completed a project with a total investment of RMB 1.05 billion yuan. Phase Ⅱ of the industrial park is planned to cover an area of 1500 mu, with a total investment of RMB 6 billion yuan. It plans to introduce 60 to 80 investment enterprises, with an estimated output value of RMB 10 billion yuan. We are determined to make the auto parts industrial park based on Xing’an big and strong. “Guangxi is the forefront of China-ASEAN open cooperation. Laos, Myanmar, and other ASEAN countries have a relatively large demand for auto and motorcycle parts. ASEAN is a large market, so we are determined to invest here.”

According to Wang Hongyu, Vice Chairman of Yunying Suyuan (Guangzhou) Trading Co., Ltd. of Yunying Investment Group, since Guangxi launched the activity of “private enterprises entering Guangxi”, the company has successively visited Guangxi for investigation and research. “Guangxi really provides a good service to enterprises. In addition, I am deeply impressed by the local customs and natural environment of Hezhou. We attach more importance to Guangxi’s natural resources. In the future, the processing and export industries will have great development.” At present, Yunying Suyuan (Guangzhou) Trade Co., Ltd. has signed a contract with Hezhou Group, and the next step is to comprehensively publicize and expand the new material industry of calcium carbonate.

It is reported that there are 28 private enterprises in the mainland of China among the Fortune Global 500 enterprises in 2020, 25 of which have invested in Guangxi. Among them, 14 private enterprises, including Ping An Insurance, Huawei, Pacific Construction, Zhengwei, JD, Tencent, Evergrande, Greenland, Geely, and Cedar, have invested in Guangxi in 2020, with more than RMB 400 billion yuan. Among China’s top 500 enterprises, Sunac China, SF Holding, New Hope Liuhe, Zhejiang Zhengtai Electric, Zhejiang Huayou Cobalt, BBK Electronics, and many other private enterprises will also invest in Guangxi in 2020.

To realize the 14th Five-Year Plan and the Long-Range Objectives Through the Year of 2035, private enterprises are indispensable. Gao Yunlong, Vice Chairman of the Chinese People’s Political Consultative Conference and Chairman of the All-China Federation of Industry and Commerce, said that the Party Committee and government of Guangxi Zhuang Autonomous Region should continue to “keep close relationship with business, think highly of business, and protect business”, constantly optimize the business environment and constantly stimulate the vitality of the private economy. Federations of Industry and Commerce and Chambers of Commerce at all levels should strive to play the role of bridge and assistant, innovate service methods, and lead the vast number of people in the private economy to make greater contributions to the economic and social development of the 14th Five-Year Plan. 

Source: China-ASEAN Panorama