Guangdong helps private exporters
(China Daily)
Updated: 2005-06-10 08:43

GUANGZHOU: The government of Guangdong will step up its support to export-oriented private businesses which play an increasing role in the southern province's foreign trade and overseas investment.

The number of domestic private firms with foreign trade licences had grown to 27,337 in Guangdong at the end of last year, since the sector was opened up to those firms in 1999, said Liang Yaowen, director of the Department of Foreign Trade and Economic Co-operation of Guangdong.

They accounted for about 84 per cent of domestic companies of all types, with foreign trade right in Guangdong and 29 per cent of all those in the country at the end of last year, he said.

Imports and exports by private firms - valued at US$35.85 billion last year - accounted for 10 per cent of the total of Guangdong. Exports by those firms rose again by 63 per cent to US$7.75 billion in the first four months of this year.

They made up 26 per cent of the total by private companies nationwide.

Private firms in Guangdong beat State-owned companies in exports through general trade for the first time last year, and accounted for about one third of such exports in the province.

Private companies have also grown significantly in their size, with 18 exporting US$100 million worth of goods or above each last year.

Chinese household electrical appliances giant Midea Group, for example, posted an 110 per cent annualized growth in exports last year, which stood at US$1.05 billion, said Li Jianwei, vice-president of the group.

The group expects its exports to increase by 45 per cent year-on-year this year, he said.

Aiming to rank among the world's top three in all its major white goods, the company expects to have half of its sales coming from exports in the coming years.

Meanwhile, private firms have invested in 149 non-financial companies overseas, involving a contractual investment of US$550 million.

An array of problems, however, need to be addressed for greater progress in foreign trade and investment of private companies, Liang said.

They include a lack of technical and managerial professionals, relatively low added-value in the products, and high similarity in product features among various firms.

Externally, there are problems of insufficient public services and enforcement of related policies for private firms.

Liang pledged better efficiency and sincere enforcement of related policies to enhance foreign-oriented operation of private firms, calling also for a joint working mechanism among various provincial government agencies to tackle the problems.

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