Xu Guanju, a deputy of the Peoples Congress of Zhejiang Province, said that private enterprises are bound to be strong if they do well in themselves

2019-03-20 18:55:00 source:


In 1986, young Xu Guanju and his father borrowed money to start a liquid soap family workshop in Xiaoshan, Zhejiang Province. He observed that every time the technicians were invited to make liquid soap, they poured a mysterious white particle into the ingredients to make the product thicker. In order to get this secret recipe, Xu Guanju spared no effort to take out his familys savings and seek advice from a colleague. Unexpectedly, the answer is surprisingly simple - salt.

At that time, 2000 yuan was equivalent to 40 months salary for ordinary people. Although a bag of salt is not worth the money, Xu Guanju has got a revelation from it: if an enterprise wants to take off, it must have a lot of core technology.

Thirty-three years later, Xu Guanju managed the small workshop as a top 500 enterprise in China, and became a representative of Zhejiang businessmen himself. He also served as Vice-Chairman of Zhejiang Provincial Political Consultative Conference and Vice-Chairman of the All-China Federation of Industry and Commerce. Xu Guanju, in an interview with China News Agency, talked about the current development of private enterprises, and used the buy-in principle: In good times, there are bad enterprises, in bad times, there are good enterprises, the key is to see the core competitiveness.

In the past year, in the complex economic environment at home and abroad, the financing difficulties of private enterprises have become a major challenge for Chinas private economy to achieve high-quality development.

But in Xu Guanjus eyes, China has faced difficulties and challenges in every stage of development in the past 40 years of reform and opening up. Private enterprises have always overcome difficulties. Like Zhejiang businessmen, there was nothing in the past, that is, they realized from scratch, from small to large in the storm. Therefore, as long as the enterprise concentrates on doing its own thing well, it is inevitable to become strong.

Xu Guanjus confidence stems from the fact that the transformation and upgrading of private enterprises are entering a new stage. He found that many enterprises experienced a period of confusion, exploration and pain, and their development ideas became clearer, focusing on building core competitiveness and achieving high-quality development. In Zhejiang Province, where the private economy is booming, enterprises are investing in innovation of modes, technologies and products.

Taking Chuanhua Group as an example, it is changing from a traditional manufacturing enterprise to an ecosystem of coordinated development of intelligent manufacturing and intelligent service. The groups fine chemicals and new materials sector, on the basis of maintaining a compound growth rate of 30% in the past five years, will grow more than 40% in 2018.

Supporting more private enterprises to invest in the tide of transformation and upgrading is the basic aspect of Chinas stable economy and huge market potential.

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Xu Guanju said that according to recent research on manufacturing industry, although the Matthew effect of the industry is still ongoing, demand has not declined significantly, and the situation is far from as bad as some people imagine. As far as the enterprises of biochemical industry are concerned, the fluctuation of raw material prices is narrower than that of last year. In the first two months of 2019, the benefits of enterprises have increased five times.

Private enterprises relied on vitality in the past and release vitality in the future. He further pointed out that in the face of the potential domestic market, the key is to improve production efficiency and product quality, enabling traditional industries to cease to be traditional by sharing concepts, platform models, digital technology.

It is worth mentioning that private enterprises can calm down to do their own good, largely because the government has also done a good job of internal affairs.

With the Symposium on private enterprises held last year as a symbol, China has put the development of private economy in a prominent position from the central government to the local government, and policies have been good frequently. Xu Guanju was very impressed with this. He told reporters that Zhejiang Province had implemented 31 specific measures in 10 areas to support the high-quality development of private economy. Every department is taking action to find out the facts, solve problems and send warmth to enterprises, which brings strong east wind to them.

Needless to say, Chinas economy is still facing challenges, and private enterprises will continue to be tested. But Xu Guanjuduo believed that there are opportunities in change and there is no reason for us not to be confident and keep moving forward.