Fujian highlights key role of private economy

The private economy has become an important growth engine for the economic development of Fujian province over the past decade, a senior official said.

"Many enterprises in Fujian that are influential in the country's textile, footwear, food, metallurgy, building materials and other industrial clusters are from the private sector," Yin Li, secretary of the Communist Party of China Fujian Provincial Committee, said at a news conference on Tuesday.

The added value of the province's private economy reached 3.38 trillion yuan ($490 billion) in 2021, up by 156 percent from the level in 2012 and making up 69 percent of the province's total economy, Yin said. Fujian's economy averaged 8.1 percent annual growth over the past 10 years, reaching 4.88 trillion yuan in 2021.

Additionally, the province registered 6.62 million private enterprises and individual businesses, five times as many as in 2012 and accounting for more than 90 percent of all of its market entities.

Citing the leading position of Contemporary Amperex Technology Co Ltd in the world's battery industry, Yin said, "The private economy is a prominent feature of Fujian's economic development."

CATL, the world's largest battery maker for electric vehicles, saw a net profit of 8.17 billion yuan in the first six months of 2022, an increase of 82 percent year-on-year. Its revenue jumped to 112.97 billion yuan during the period, up 156.32 percent year-on-year, the company said.

Fujian-based companies, including sportswear maker Anta, automobile glass manufacturer Fuyao and kitchen and bathroom brand Jomoo, have become leaders in their respective sectors.

"The private economy has also become an important carrier of scientific and technological innovation in the province," Yin said.

Up to 95 percent of the high-tech enterprises in Fujian are private companies and 70 percent of the scientific and technological achievements were created by private enterprises.

Products made by Fujian-based companies, including sports equipment from Anta and Peak, the ammonia refrigeration system of Snowman Group and the environmentally friendly paint of 3Trees, were widely used during the 2022 Beijing Winter Olympic Games.

"Moreover, the private economy has become an important force in improving people's livelihoods, helping provide more than 80 percent of jobs and contributing over 70 percent of tax revenue in the province," Yin said.

In addition to the private economy, Fujian's trade with the Taiwan region surpassed 700 billion yuan over the past decade, and more than 10,000 companies were established by investors from Taiwan. The actual use of investment from Taiwan exceeded $10 billion in the past 10 years, Yin said.