Dynamic Private Enterprises in Shandong

Relaxing market entry conditions: An impartial market entry system will be carried out. All competitive industries and investment fields, excluding those otherwise specified, will open doors to private capital. Shandong is currently awaiting approval from the central government to carry out trials on opening monopolies and franchised industries to private investment, and is drafting new rules and regulations. The province is also adopting policies to admit private capital in basic industries, infrastructure, public utilities and other fields. Private capital is also encouraged to take part in state-owned enterprise reforms and reorganization. No share limit will be set in competitive sectors for private owners to hold controlling interests in multi-ownership firms.

Improving the service of facilitating agencies: Authorities at all levels will not be permitted to designate agencies to issue assessment reports or accreditations. Companies may choose facilitating agencies in different areas to issue the most necessary assessments.   

Establishing a modern corporate system: Private companies will be guided to improve their corporate governance while encouraging single-ownership businesses to grow into multi-owned corporations, spurring transformation from single ownership to multi-ownership to establish a mature corporate ownership structure.   

Encouraging eligible self-employed to start businesses: Capable self-employed people will be encouraged to set up private companies, partnership firms or limited liability companies while keeping their original brands and business strategies.

Advancing financial services: Commercial banks will be urged to increase supply of credit to the private economy.  Private companies must be given equal treatment in credit and credit ratings. Governmental guarantees will be strengthened, and support will be given to legal private loan guarantee institutions.

Diversifying employment forms: The public employment service system will be improved. Long-term labor contracts will be favored as a solution to the problem of labor shortage. Small and micro businesses may adopt flexible management, including hiring hourly employees, part-time staff and temporary workers. At the same time, individuals should adopt a flexible view on employment.  

Implementing equal land use policies: Private firms will be given the same treatment as state and collective-owned enterprises in land use and supply.


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