Proposals Benefit Small Businesses

Millions of employees of China's medium-sized and small non-governmental businesses are the biggest beneficiaries of three proposals put forward by CPPCC member Shan Da'nian since 1998 as their enterprises are shining with increasing splendor, thanks to the implementation of the proposals backed by the government.

His proposals, which call for greater support to the long-neglected small businesses, have received enthusiastic responses from top Chinese leaders and the country's top legislature, said Shan.

The proposals have resulted in the establishment of a medium-sized and small business department under the State Economic and Trade Commission, and the government pledge of 2.6 billion yuan to support the development of non-governmental businesses across the country, said Shan.

Shan, now in Beijing for the Fourth Session of the Ninth CPPCC National Committee scheduled to open Saturday, put forward his first proposal in 1998, calling for policies to allow technical personnel to hold participating shares in non-governmental enterprises and urging greater investment in risk funds and the establishment of growth enterprise funds.

The proposal became the No. 3 proposal submitted by the CPPCC to Chinese President Jiang Zemin in 1998. Soon after, a group was jointly set up by the CPPCC and some departments of the central government to conduct a national investigation. It was in that year that a new organization, the medium-sized and small business department, was formed under the State Economic and Trade Commission with the special approval of Premier Zhu Rongji, despite a sweeping reshuffle and streamlining of government ministries and commissions.

Greatly inspired by the government response, Shan, who was the general manager of the East Lake New Technology Development Zone in Wuhan, capital of central China's Hubei Province, for eight years, went on with his in-depth investigations and came out in 1999 with another proposal, criticizing some localities that over-biased toward larger State-owned enterprises to the neglect of smaller non-governmental ones. He stressed in the proposal the importance of medium-sized and small businesses and the difficulty they had in securing bank loans and safeguarding their legitimate rights and interests.

The proposal immediately caught the attention of Chinese leadership and the country's top legislature. The NPC is considering the drafting of a law for promoting the development of small businesses and the government has decided to set aside 2.6 billion yuan as growth enterprise fund.

"I'm pleased to have performed my duties and got the great support from the central leadership," said Shan. "Now the strength of the government support is being felt not only in the East Lake development zone but also throughout the country."

This year, he has brought to the CPPCC National Committee session another proposal, calling for greater attention to encouraging students studying abroad to return to create businesses.

"A good government and a party in power with great rallying force are sources of happiness of the people," Shan noted. "I'm eager to make proposals to such a government and such a party and contribute my share to the prosperity of the nation."