On October 23, during a press conference held by the Henan Provincial Publicity Department in Xuchang, Vice Mayor Zhang Qingyi unveiled key insights into the thriving private sector that forms the backbone of the city’s economy. As one of the most vibrant areas for private enterprise in Henan Province, Xuchang currently boasts approximately 137,000 private companies, which contribute over 75% of the city’s tax revenue, more than 80% of its GDP, and around 90% of fixed asset investment and employment. The city also ranks third in the province with 11 publicly listed companies, nine of which are private.
Zhang attributes this success to Xuchang’s focus on fostering a close-knit, transparent relationship between the government and businesses, implementing three core strategies to create a business-friendly environment.
Firstly, the city has effectively utilized policies to ensure they reach businesses quickly and accurately. With over 230 engagement activities conducted this year, Xuchang is committed to addressing the pain points and challenges hindering business growth. They’ve developed tailored support measures that are categorized by sectors, focusing on consumption, investment, and foreign trade. This has led to a rise in the number of market participants to 463,000—an 8.9% increase—with private enterprises making up 98%. Additionally, the introduction of the “Xuchang City Regulations for Promoting Technological Innovation” has resulted in the provision of 2.92 billion yuan in technology loans and over 50 million yuan in rewards for innovation efforts.
Secondly, Xuchang has optimized its administrative services to lower costs, reduce burdens, and enhance efficiency. Adhering to the principle of “responding to every inquiry and minimizing disruptions for businesses,” the city has deepened reforms in service delivery. They have implemented innovative approval models to consolidate service processes, achieving a 100% efficiency rate for city-level administrative services that require businesses to “run only once” and a 98.7% rate for non-face-to-face approvals. With a focus on digitalization, Xuchang has issued over 351,000 electronic certificates, leading the province with a high certificate issuance rate.
Lastly, in addressing the specific needs of businesses, Xuchang has proactively established partnerships and support mechanisms. A “Double Ten Workdays” initiative allows government officials to visit and assist local businesses on the 10th and 20th of each month, with 2,314 support staff tasked with hands-on problem-solving. Additionally, a unique “complaints forum” system allows for direct dialogue between companies and relevant governmental departments to gather feedback and tackle issues collaboratively. The city has also hosted various service activities aimed at addressing workforce and production challenges.
In summary, Zhang highlighted that Xuchang’s strategic approach to optimizing the development environment and bolstering business confidence has emerged as a powerful catalyst for its dynamic private economy.
