China’s economy has been hurt by covid-19 is putting it mildly. The 6.8% year-on-year fall inin the first quarter ended a 28-year stretch of continuous, mostly rapid growth. The Communist Party, which derives legitimacy from rising living standards, is keen to put the slump behind it. President Xi Jinping is reversing a harsh lockdown and propping up state firms. But the world’s second-biggest economy will not heal by Mr Xi’s fiat alone.
This zeal may stem from a belief that anyone can make it big. Chen Long, provost of the Hupan School of Entrepreneurship in Hangzhou, a startup-rich city in Zhejiang province, puts his compatriots’ entrepreneurial vim down to “countless examples of success”, which give “a sense that you can change your own fate”.
Unicorns are not, of course, a representative sample of private enterprise. But they nonetheless illustrate that Chinese entrepreneurship is broad as well as deep. According to Vision Plus Capital, a venture-capital firm, a big share of the herd grazes around cities with a high startup density per million residents, such as Hangzhou , Shenzhen and Beijing . But their founders are a more geographically diverse bunch. Hurun lists 112 founders of Chinese startups worth $1.5bn or more.
More recently Dream Town, a state-run startup village near Alibaba’s campus in Hangzhou, has been handing out cash and free office space to promising founders. Xiamen, a city in Fujian, offers the 3,000 startups in its Software Park generous subsidies for rent and research and development. Firms got preferential loans and a two-year waiver on corporate tax, plus a discount for another three.
This increasingly heavy hand is the private sector’s second problem. The party looks more hostile to it than at any time since before Deng set up “special economic zones”, capitalist sandboxes for firms, in the 1980s. Mr Xi favours state-led development over private-sector effervescence, maybe seeing the cult of entrepreneurs as a rival source of authority.
These value stories depend on made-up financial statements and massive debts.
There is nothing private in China. Not like the way you understand from a private company in the western world.
But they are not that private: the Communist Party can tell a CEO when to retire and get how much pension.
All under the influence of the Chinese Communist Party, and working for its objectives. Just as doctors, journalists & bloggers are not permitted to express anything contrary to the official line so these companies do not have the freedom to do anything not permitted by the CCP.
Hard to believe these are truly “private companies”. Most wealth / ownership in China is only skin deep. There are special relationships and obligations everywhere. Balance sheets are NOT always transparent nor are relationships clear to outsiders. Westerners beware.
Free competition capitalism takes root in China. Whereas in the US capitalism has evolved into financial monopoly.
China is so kool
They can play fast and loose with the books and have done in it the past. Taking debt from one and creating a new company to absorb the debt. The company that absorbs the debt just disappears.
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On the surface they are privately held, and not many people are naive enough to believe you can succeed there and become a 1bn company without heavy Government involvement and control, except for the Economist.
Westerners cannot understand China just like fish in the water cannot understand why animals on land can breathe.
Can Someone Point out, WhY? And How? I think LOW PROFIT MARGIN!
The hint is in the intro on top, inconclusive.
Those companies just the name only. They are all controlled by the Communist regime, not something we think they are. They are not private. So comparison with the rest of the world does not make any sense.
Nothing is really private in China
Nah, that's nothing Amurica First!
'privately held'
Money can't buy you love 👌
are they really private or not I'm curious.
I know how chines do the numbers....
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Wow. Not surprised but glad to see so many blind and stupid W people here. hahahahaha
Does this include foriegn corporate partnerships. Foreign companies have to partner with a Chinese company and operate as a chinese corp within China.
Do you really believe their numbers and financial statements ? I won’t even believe the date on newspapers coming from china
Privately held, maybe, but still controlled or manipulated by the CCP. Stop kidding yourselves, the Chinese Communist Party in absolutely in charge of everything that happens in China. Nothing happens without their permission.
Yep, sheer stroke of genius sending our jobs and companies to third world countries to create the so-called global economy. Under the guise of philanthropy, we've transformed those countries, created the multibillionaire and created our very own poverty stricken nation.👍
Privately held, are you kidding me, or are you fooled? The whole country is privately held by a certain number of top level CCP officials...
chenweihua China 1 ☝️
The Economist has been full of CCP horse shit for years now. Zero credibility.
Not true. China has no private business.
How can they be pvt companies when ccp can arm-twist their owners to run their govt agenda at will. In china everything is govt owned...even a human life.
206 CCP backdoor controlled entities. Fixed your headline.
Good one, China!
That's why the 🇺🇸 is gonna take back our companies let's see who is the best on the block
lol
The Economist seems to be either naive or ignorant. Lol.
China has another definition of “privately held” companies for sure... you can run your own business until China govt decides you have to carry mission for them or you can earn money on condition you also carry out CCP political will/plan..
No such thing as privately held companies in CCP you dopes.
Demographic dividend makes what China is now.
Early 2010 in China was about letting private grow but try to keep them below 10b evaluation. They unlike other developing nations wanted many private companies to cross billion mark instead of one eating all the share. After one point they relaxed a bit on that. Good idea.
When the State needs it, it will be expropriated.
Economist has been taken over by CCP too?!
Central Committee of the Communist Party of China knew about every employee's dark side, hobby, interest, opinion, family members, assets - land, properties including your company's business entity in the Mainland China, Hong Kong and Macau.
eh? there's no such thing as Privately Owned in China. you wrote the wrong country name
Privacy, privately-held and independent entrepreneur do not coexist with the socialism, communism and the ideology of Karl Marx. Central Committee of the Communist Party of China owns the so-called 206 privately-held companies in Mainland China.
Privately held
The Economist used to be a thoughtful magazine, now is full of rhetoric and bias.
Is this a joke?
Chinese companies are so rich, I believe if we claim the lost on Chinese viruses in the future, they can pay us. LOL.
Nothing is private in a Communist dictatorship. The Economist continues to be a disgrace.
Sounds impressive but is misleading! They may be privately held but under the umbrella of China Inc.strictly regulated. Under Xi even more so! The more systemrelevant and “increasing returns” prone the more they are controlled by the CommunistR.Huawei is one prominent expl.
Wrong. Ask Jack Ma. CCP contribs all.
The private Trust that owns Huawei is 99% owned by the CCP
Death to china
Every company has compromised its core value with Chinese communist party. There is no such thing as private company in China. CCP owns them.
In China controlled by the CCP dictatorship, the people have no real private property at all. As long as the CCP wants something, dare to defy it, the result is arrest or death!
There’s no such thing as privately held in China. The CCP controls all.
Private? China? Not in the same sentence. Except: China doesn’t care about your private properties.
CHEAP LABOR
They are all one company. CCP.
How dare they when you have sooo advised against it.
Communist democracy
Look at communism. All grown up.
HOW MANY ARE FOREIGN OWNED
So is a Communist ideology good for business than a Capitalist one ? This turns the logic of whatever we learnt on its head 🤔 Pls explain HarvardBiz IvyLeague
This is false. There is nothing the CCP doesn’t own in China.
They are all subservient to the CCP.
'private'
You all work for the CCP don’t you, all of you in the MSM, directly or indirectly, it’s so obvious.
This is not legitimate. You can't truly 'hold' a company under such an oppressive regime!
Is the Economist privately held too by CCP? These so-called private companies are buying out strategic competition worldwide to further cement their future World domination using open markets.
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You’re dense
The U.S. has 4 privately held companies valued at $1 Trillion or more. More than any other country.
Thanks for WuFlu China....
Even Jack Ma has to bow down to CCP. There's no 'private' under Communist regime.
Approx 100 companies in the US have broken the $100B mark.
There are roughly 6,000,000 private companies in the US, according to the census bureau.
We need fertilize land here to have them here
Oh may be your “privately” held refers to CCP officials or their relatives or their so called “white gloves” that manages their wealth. That’s why your magazine like many others have zero credibility now.
Privately?
realDonaldTrump President cut the snake by the head! Stop 🛑 China manufacturing development.
So is tencent private? Huawai? Baidu? Alibaba private anymore? SF express? DJI? Hainan Airline? Every so called “successful” private business is CCP States controlled now. Who are you trying to fool now?
Privately ?
Never ever believe china hava private companies. Because when government not happy about your action, private company will shutdown in anytime. Don’t waste your time and money opening up company in China. Evil Chinese communist regime.
Good joke. Every business with 50 employees in China has a CCP member on the board. There are no truly private businesses of any size there and certainly none worth $1 billion or more. They’re all ultimately instruments of the government and operate under their implicit mandate.
The whole China is privately held by the CCP. Making the CCP richer than any other parties in the world.
Obviously, You didn't know China well. There is no one privately held company in China. The CCP controls them all in China.
Fake news. is CCP’s propaganda.
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