Chongqing, a major inland city in southwest China, is leveraging its unique strengths and taking multi-pronged measures to foster a favorable business environment for private enterprises, aiming to establish itself as a national model for private sector growth, Mayor Hu Henghua said.
As a key strategic hub for China's "large-scale development of the western region" and opening-up efforts in inland areas, Chongqing has a great reliance on private businesses, which make up 97.8 percent of the city's total enterprises, contributing over 60 percent of its GDP and creating more than 90 percent of new jobs.
In an exclusive interview with the China Central Television (CCTV), Hu, also deputy secretary of the Communist Party of China (CPC) Chongqing Municipal Committee, said the city will continue to scale up policy support, fine-tune services, and improve resources allocation to strengthen the development capacity, innovation capability, and competitiveness of its private sector.
"During his inspection tour in Chongqing (in April 2024), General Secretary Xi Jinping positioned the city as a key strategic fulcrum for the development of China's western region and a comprehensive hub for inland opening-up. We support private enterprises in playing to their full potential in industrial upgrading, leveraging their strengths in technological innovation, taking the initiative in investment expansion, and capitalizing on opportunities for productivity and efficiency improvements," Hu said.
In late March, Chongqing unveiled a comprehensive policy package incorporating 27 measures across six key areas to address private enterprises' concerns, including resources guarantee, rights protection, financial relief, and fostering a cordial and clean government-business relationship.
"We are providing various financial services for private businesses by revamping our Seed Investment Fund mechanism, expanding 'loan renewals without repayment of principal' policy, and increasing first-time loan approval rates for tech firms. The city is also integrating and expanding credit-based incentives in law enforcement, administrative approvals, and financial services to offer private businesses timely support, helping them weather challenges and stabilize growth," said the mayor.
As one of China's first pilot cities to implement innovative reform measures aimed at enhancing business environment, Chongqing is ramping up its efforts to tackle bottlenecks that hinder private sector development and push for a world-class, market-oriented, and law-based business environment.
"We will strengthen policy guidance and optimize the business environment. Building on the Chengdu-Chongqing Economic Circle initiative, we will take the lead nationwide in exploring regional market integration. This will boost confidence among private enterprises and entrepreneurs, allowing them to move forward unburdened and pursue bold development opportunities," said Hu.
China's Chongqing pledges better business environment for private sector growth
