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Private firms can play bigger role in quality growth

By Liu Yingqiu | China Daily | Updated: 2024-04-22 07:37
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An employee checks export-bound products at a spandex producer in Lianyungang, Jiangsu province. [WANG CHUN/FOR CHINA DAILY]

The latest data for the Chinese economy presents a complex picture. Despite showing clear signs of recovery, the economy faces pressure in some sectors along with the usual challenges and opportunities. It is important therefore to break down both visible and invisible barriers to shape a new developmental paradigm. This makes it essential for private enterprises to climb up the advanced industrial sector's ladder and boost their confidence in order to achieve success.

Confidence is a belief in oneself, the conviction that one has the ability to meet the challenges and to succeed, and the will to act accordingly. It comprises three elements: belief, expectation and the perceived likelihood of success. Strong confidence is a firm belief in achieving success, while a lack of confidence indicates doubts about succeeding in an endeavor. More than just influencing a company's capacity for innovation and engagement, confidence is needed to realize the full growth potential. Indeed, "confidence is more valuable than gold".

Confidence is underpinned by self-assurance, which can be both conditional and unconditional. Conditional confidence depends on external conditions and the environment for success, while unconditional confidence is rooted in one's inherent ability, independent of external circumstances.

To bolster their confidence, private enterprises need to first get rid of their dependency on external conditions which often lurks deep within entrepreneurs. To do that, private enterprises have to enhance and consolidate their unconditional self-confidence. That does not mean ignoring external factors but rather transforming them into internal strength. This approach will ensure that, irrespective of the challenges and setbacks, private enterprises can remain steadfast and proactive while continuously striving to outdo themselves to achieve higher-quality growth.

Enhancing unconditional confidence, by default, reinforces conditional confidence, making it more robust and effective. As a result, private enterprises become more self-assured and confident of achieving greater heights of development. The dynamic mix of unconditional confidence and conditional confidence in entrepreneurs enhances their capability to discover, innovate and execute high-quality, high-tech projects. This heightened capability allows them to rapidly and accurately secure leading positions in high-tech industries, fostering higher-quality development.

The pioneering generation of China's private entrepreneurs after the launch of reform and opening-up provides a vital lesson in this regard: they had strong unconditional confidence, along with conditional confidence, which helped them achieve success and facilitated their rapid growth. This blend of confidence not only made them "bosses by the day and sleep on the floor at night" but also enabled their businesses to thrive and grow healthily.

In today's China, reinforcing the confidence of private entrepreneurs is critical for blending their conditional confidence with unconditional self-belief. Some key initiatives are essential to achieve this blend and stimulate the healthy growth of private enterprises.

Based on enhancing research and promoting a correct understanding of the significant contributions and role of the private economy in China's economic progress, it is necessary to ensure the policies and guidelines from the Party and the State Council encouraging, supporting, and guiding the healthy development of the private economy are fully implemented.

Recognizing the nature of the private economy's development, a unified national market is essential for protecting and encouraging fair competition and thus fosters overall growth.

Past policy constraints that led to some problems and division in macroeconomic management must be analyzed to see how macroeconomic policies can be strengthened and made consistent. This will ensure synchronized efforts, create positive synergy and enhance the effectiveness of high-quality macroeconomic policy combinations.

By implementing all the strategic plans and requirements set forth by the central authorities, such as ensuring equal treatment for State-owned and private enterprises, the authorities should improve the laws that promote the private economy. This approach will consolidate policies, public opinion and legal support for the development and growth of private enterprises.

By safeguarding the private property rights of entrepreneurs and market operators, and aligning them with their commitment to lawful and focused growth, and by synchronizing people's desire for prosperity provided they follow the law and promote innovation in entrepreneurship, China can integrate individual short-term benefits with the long-term development of the national economy.

With continued enhancement of entrepreneurs' confidence, more enterprises can become leaders in the advanced technology sector, and make greater contributions to China's modernization and the sustained, healthy and high-quality development of the national economy.

The author is Professor of Economics and the Former President of Graduate School of the Chinese Academy of Social Sciences.

The views don't necessarily represent those of China Daily.

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