Private Chinese businesses are witnessing improved performance, due to growing market vitality and the business environment amid the country’s antitrust efforts, but some are also facing pressure like rising raw material costs, officials and company executives said on Sunday. Their comments were made as the All-China Federation of Industry and Commerce, a national body that serves the private sector, released an annual report on the top 500 Chinese private enterprises on Saturday.
China’s top 500 private companies booked total revenue of 35.12 trillion yuan ($5.43 trillion) last year, which represents 16.39 percent year-on-year growth. Net profits reached 1.97 trillion yuan and total assets reached 50.73 trillion yuan, respectively increasing by 41.4 percent and 37.25 percent. Ninety-eight of the top 500 have total assets exceeding 100 billion yuan, and 18 were added to the list this year.
Huawei Technologies Co has topped the list for six consecutive years, followed by JD, Hengli Group and Amer International Group. Liang Wen’gen, chairman of Sany Group, said: “We private enterprises get the greatest confidence from the country’s strengthening support for private firms.” China’s top leaders have encouraged us to boldly go forth in our businesses, reassuring us that private firms will have a bigger stage.” He also said that large number of Chinese companies pay more attention to leveraging technologies in 5G, artificial intelligence, big data as well as new energy and batteries for an edge globally,”.
Wang Tian, chairman of Better Life Group, said: “China recently beefed up its antitrust efforts and regulations on all kinds of unfair competition. Such efforts give law-abiding enterprises broad development space and meanwhile drive the efficiency of private companies and the market economy.”
However, Huang Rong, vice-chairman of the federation, said more than 50 percent of the top 500 private firms have said that the COVID-19 pandemic has had a great impact on their businesses. 43.8 percent said they might be affected by the unstable global industry and supply chain. The country has taken a series of measures to help private companies tackle these problems.
The report also noted that about 90 percent of the top 500 private enterprises have undergone digital transformation. The country is now a leader in the fourth industrial revolution, which is mainly based on the digital economy.
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