China Business News, a Beijing-based newspaper managed by
the All-China Federation of Industry and Commerce (
AFIC), selected the top
ten news in private sectors in 2003 as follows:
1. Private entrepreneurs sparkle on political stage
On January 11, Yin Mingshan, president of Chongqing Municipal
Federation of Industry and Commerce and board chairman of Chongqing
Lifan Industry (Group) Co., Ltd., was elected vice chairman of
Chongqing Committee of Chinese People's Political Consultative
Conference (CPPCC). He was the first private entrepreneur to enter
the CPPCC leadership at the provincial level since China's
opening-up and reform in 1978.
On January 21, Xu Guanju, president of Zhejiang Federation of
Industry and Commerce and board chairman of Zhejiang Transfar Group
was elected vice chairman of CPPCC Zhejiang Committee.
At least 65 delegates of the 10th CPPCC are from
non-state sector, accounting for 2.9 percent of the total.
2. Private enterprises shoulder social
responsibility
Incomplete statistics show that over 9,600 private entrepreneurs
and AFIC members donated 840 million yuan (US$101 million) worth of
merchandise and cash. In SARS-hit Beijing, 496 private enterprises
donated 93 million yuan (US$ 11 million) worth of goods and cash to
the Red Cross
Society of China and local civil affairs departments.
3. Incidental death of private entrepreneurs in focus
The crimes toward tycoons emerge since the beginning of this
year.
On January 22, steel tycoon Li Haicang, also vice chairman of
AFIC, was shot dead in Shanxi Province; On February 12, fur tycoon
Zhou Zubao from Zhejiang Province was killed at home; On August 17,
property tycoon Liu Enqian from Gansu Province was shot dead in
Lanzhou; On September 7, Qiao Jinling, the tycoon from Henan
Province and board chairman of Henan Huanghe Enterprises Group,
died suddenly.
4. Commerce chamber influence government policies
On June 13, the central People's Bank of China
issued a circular to curb property development loans and individual
housing loans. The measure aims to lower house prices in order for
middle- and low-income families to buy houses, however, the house
prices are still rising in Beijing. Some property developers
attribute the price hike to increasing house costs caused by the
new loan policy. The Housing Industry Chamber under the AFIC also
complained that the cash chain of small property development
companies had been broken, and the "bridge loan" applicants were
rising.
On August 31, the State Council issued another circular to
affirm the importance of the real estate market, and pledge
financial support to the real estate industry.
5. Private enterprises enter oil market
On June 14, the first phrase of the LNG project by Xinjiang
Guanghui Enterprise Group started in Xinjiang Uygur Autonomous
Region. The total investment volume is about 8 billion yuan (US$966
million).
At the beginning of November, Hubei Tianfa Holding Co. was
granted a license for processed oil trading, following Sinopec and
ChinaPetro. It was the first license granted to non-state trading
companies.
6. Tycoons in trial
On September 7, the Supreme Court of Liaoning Province made the
final verdict on tycoon Yang Bin, who once ranked second in
Forbes magazine. He was charged for bribery, falsely
registered capital, fraud, illegally farmland occupation, and
forgery.
The Shanghai property tycoon Zhou Zhengyi, a former
Forbes billionaire, was charged with stock manipulation and
falsely registered capital.
7. Lighter makers win dumping case
On September 11, the European Commission said in an official
communiqué that an anti-dumping investigation on Chinese lighter
makers would end since the European producers withdrew their
litigation. The Chinese lighter makers, mainly private enterprises
from Wenzhou, southeast China's Zhejiang Province, took many
measures to lobby and hire lawyers to appeal final judgment.
Since China's WTO entry in 2001, anti-dumping cases increased
sharply. Chinese enterprises come to learn of the anti-dumping
experience in their international expansion.
8. Reasonable returns in education investment allowed
Starting from September 1, 2003, The Law on the Promotion of
Non-public Educational Institutions took effect. One of the
articles concerns how an investor can get reasonable returns from
education investment.
9. New breakthrough in private economy theory
On October 14, the third plenary session of the 16th CPC Central
Committee said in its decision that it will boost and guide the
development of the non-state sector, and allow them to enter
infrastructure, public service and other previously forbidden
areas.
Also, the latest constitution amendments also suggest the
government should protect legal rights and interests of the
non-state sector: "Citizen's legal private property as well as its
inheritance rights will be protected."
10. First private economy analysis report issued
On December 1, AFIC held a meeting analyzing the development
situation of private economy in Zhengzhou, central China's Henan
Province, and released its first ever analysis report，illuminating
the all-round development of the private sector, including
obstacles, environment, and government policy.
(China.org.cn by Tang Fuchun and Daragh Moller, January 5,
2004)