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Dismantle monopolies, Chinese entrepreneurs urge government

Tai Jui-fen and Staff Reporter

2012-04-06

15:17 (GMT+8)



Bao Yujun at the Boao Forum for Asia. (Photo/Xinhua)

The close to 10 million Chinese enterprises that together employ more than 200 million workers in the private sector are pressing for an end to the monopoly enjoyed by government-owned corporate giants.

When attending the private entrepreneurs roundtable meeting at the 2012 Boao Forum for Asia recently held in China's southern island province of Hainan, chairman Bao Yujun of the China Federation of Private Enterprises said that private enterprises are now in need of strong government support and a shot in the arm as they are encountering weakening demand in both domestic and overseas markets.

Among his suggestions, Bao urged the government to help open the "glass doors" and "swing doors" that have excluded private companies from certain industries and lines of business. There are no specific regulations that prohibit enterprises from entering the fields monopolized by state-owned conglomerates, but the false doors to which Bao referred have long effectively blocked the companies from joining the business operations of financing, energy, transportation and social services in China, reported the Guangzhou-based Southern Daily.

Bao said that the government should help break the monopoly system to encourage investment from the private sector because the current tightened credit policy will only force more private enterprises to seek funds in the private lending market and see many of them fall victim to scams and loan sharks. Other entrepreneurs at the roundtable meeting said that the government should adopt relaxation measures to enable private companies to compete with state business groups in the emerging and strategic fields of intelligent electricity network, energy-saving, environmental protection, carbon reduction and government-sponsored housing projects so that they may have more room for expansion.

The state-run news agency Xinhua reported that a survey of entrepreneurs in 16 provinces and cities shows that 40% of the country's private enterprises wish to enter the field of financial services while 20% of them aspire to provide services in educational and medical services. Fred Zuliu Hu, an economist and chairman of Primavera Capital Group, pointed out that private enterprises have run into difficulties raising funds and have encountered sustained unfair treatment in their plans to enter new sectors.

The unfair restrictions have smothered the healthy development of private enterprises, which are supposed to be the most active and vital, Hu said. The latest tally shows that there are now more than 9.64 million registered enterprises in the private sector across China.

References:

Bao Yujun 保育鈞
Fred Zuliu Hu 胡祖六

[Heessduernbub]

The problem is not monopoly but corrupt Chinese government.

Only by dismantling the totalitarian regime and introducing free elections, then China can be still corrupt like US lobby interests!

So who can save the world?

Maybe science can help?