An increasing number of Guangdong's private enterprises are expanding as international businesses. In the first four months of 2005, over 4,100 private enterprises were registered to conduct international trade, according to the Guangdong Department of Foreign Trade and Economic Cooperation. In the first half of this year, exports by private enterprises in  Guangdong soared 62.8 percent to hit 12.66 billion USD, while the province's total exports were valued at 102.26 billion USD, an increase of 23.5 per- cent. Private enterprises contributed to more than a quarter of the export increases.

Private enterprises are now playing an integral role in Guangdong's foreign-oriented economy. Since China permitted private companies to conduct international trade in 1999, the foreign trade volume of these enterprises has been booming with an annual growth rate of 150 percent. The province's private enterprises' total annual export value increased from 348 million USD to 35.85 billion USD, accounting for 10 percent of the total export value in Guangdong, or one third of the exportation of China's private sectors. This growth would not be possible without the preferential policies granted by the province in supporting export-oriented private enterprises.

PREFERENTIAL POLICIES AND MEASURES

In recent years, Guangdong has introduced several preferential policies and formulated a document entitled "The Implementing Measures for Supporting Foreign Trade-Oriented Private Enterprises" on supporting private enterprises. These measures explain how private enterprises receive preferential or equal treatment in funds, import-export rights applications, im- port and export quota applications, offshore investment verifications, cus- toms clearance procedures and staff entry-exit management.

These measures are aimed at promo- ting private enterprises to expand out- ward and involve the following key steps:

First, the provincial department of foreign trade and economic cooperation authorized the bureaus of foreign trade & economic cooperation in Guang- dong's 21 cities to examine and approve local private enterprises' applications for foreign trade autonomy. The application procedures for these cities have been streamlined in recent years. Now, all private enterprises with the capability of manufacturing export products can apply for import-export rights.

Second, customs, inspection and quarantine, foreign exchange admini- strations and other departments have pooled their resources to improve ser- vices for foreign trade-oriented private enterprises. This year, the Bureau of Inspection and Quarantine plans to send 1,000 experts and technical mem- bers to help these enterprises to im- prove their quality management systems and production methods and to pro- mote the knowledge and implemen- tation of ISO 9000, ISO 14000 and other international quality certificates.

Third, for five consecutive years starting from 2003, the provincial finance department is allocating 275 million RMB each year as development funds for foreign trade-oriented private enterprises.

Finally, financial institutions have strengthened their support for foreign trade-oriented private enterprises making it easier for SMEs to obtain loans from local financial institutions.

A MORE PROMISING FUTURE

In the future, Guangdong will foster a number of knowledgeable, innovative and strategic export-oriented private enterprises as well as a number of large enterprise groups with famous brand names and key technologies who have sustainable development and foreign investments.

TARGETS By 2010, the government expects the private sector to occupy over 20 percent of the export volume of the province. By then, Guangdong will have a group of privately owned foreign trade-oriented enterprises that have brand names with advanced technology and have the ability to invest abroad.

Editor: Yan