Modernized workshop in Lhasa Beer Plant.    Photo by Chen Jiajia

The non-public economy of Lhasa, having emerged from the great reform and opening up policy, started from nothing into a growingly stronger sector with the great development of the country. During the past 30 years of development, the non-public economy in Lhasa witnessed numerous heady moments as if being nourished by the spring wind and dews while producing blossoms and fruits. In the memorable historical time of 2011, the non-public economy of Lhasa made use of the policy advantages again to enter another golden development era. The development of the non-public economy of Lhasa is a vivid story about the spring…

On November 1, 2011, Shang Fuwen, general manager of the Lhasa Hailuo Commerce and Trade Ltd., succeeded in registering his own enterprise without spending any administrative registration fees. He hence became the first beneficiary of the “zero cost” registration system in Tibet. Shang Fuwen walked out of the Industry and Commerce Bureau with high spirits. He couldn’t help feeling exasperated at that moment, as if even the air was blowing with some mysterious sensation. He said afterwards – he had this strong hunch that the non-public economy of Lhasa had welcomed another spring.

It is necessary to tell the story from the beginning. In 2010, the Party Central Committee and the State Council released the Suggestions on Strengthening and Improving the Work of the Federation of Industry and Commerce, held a series of sessions aimed at strengthening and improving the work of the Federation of Industry and Commerce, and established the strategic guidelines on strengthening and improving the work while further facilitating the development of the non-public sectors. In September 2011, the Tibetan Autonomous Region applied the central guidelines to the actual situation of Tibet by opening the conference on Strengthening and Improving the New-era Work of the Federation of Industry and Commerce with the Leapfrog Development of the Non-public Economy. Chen Quanguo, party secretary of the autonomous region, proposed to regard the non-public economy without ‘political, ideological, policy, developmental, and practical restrictions’ by demonstrating great courage and far-reaching strategies, so as to push the leapfrog development of the non-public economy in the entire region from the new start point. After that, the city of Lhasa also held its own conference on Strengthening and Improving the New-era Work of the Federation of Industry and Commerce with the Leapfrog Development of the Non-Public Economy and launched such documents as Suggestions on Facilitating the Leapfrog Development of the Non-public Economy and Suggestions on the Implementation of Strengthening and Improving the Work of the Federation of Industry and Commerce, which proposed to lift the political, ideological, policy, developmental, and practical restrictions while promoting the policies with lower qualification standards and registration costs, lower taxes, stronger support, less supervision, and more incentives.

The person in charge of the Federation of Industry and Commerce of Lhasa commented that though former policies were generally in favor of the development of the non-public economy, there were certain underlying political and ideological restrictions that prioritized the public sectors over the non-public sectors, emphasized supervision more than service, and established more inspections than support. He said, “Both the regional and municipal governments and the Party committees held conferences and produced related documents in 2011, and provided strong policy support for the development of non-public economy. These were all dedicated to stimulate the emergence and growth of non-public enterprises through a series of procedures, to enlarge and spread the entire economic output of the non-public sector, and to increase the quality and integrity of the non-public economic development, so that the non-public economy would grow better and faster.”

As the old saying goes, please do not sing a sad song mourning the lateness of the spring when the spring wind cannot even blow to the Yumen Pass (which means to cherish what one has). On the basis of related regional policies, the city of Lhasa has strengthened its support in ameliorating policies, funding, human resource, facility, environment, and credibility with its open mind and good services. In terms market access, policies that do not prohibit or restrict non-public enterprises will be adopted to allow the enterprises into the market, yet strong regulation will be implemented after their entrance in order to guarantee sound service. Except those strictly prohibited by the state regulation, all industries will be open to non-public capital, which will also enjoy the same policy treatment with enterprises of differentiated ownerships. The special fund of RMB5 million will be granted each year to support the development of the non-public economy; accordingly, the operational budget of the Federation of Industry and Commerce will also increase; RMB2 million startup fund will be implemented in colleges of higher education in order to support college graduates in starting up their own enterprises; an additional RMB15 million will also be invested for training courses that provide technical support for the non-public enterprises; new tax preferential policies will also be implemented and improved from 2011 to 2013, tax reduction for the non-public sectors in the entire city mounts up to RMB1.154 billion, which takes up 97.6% of the entire tax reduction amount of the city. By elevating the tax threshold, most of the privately or individually owned enterprises have enjoyed the tax preferential policies. By 2013, 27,382 private enterprises, or 87% of the entire number of private enterprises in the city, have been benefited from the tax exemption.

As another old saying goes, spring consists of all the blossoms of the flowers instead of one.

Breakthroughs come one after another after the first achievement. Shang Fuwen has set an example for numerous people like him. It is such people that have created the diversified, competitive, and burgeoning environment of the non-public sectors in Lhasa.

Since the first conference on the non-public economy in 2011, the development drive for the entire non-public economy has become even stronger. By October 2013, there were more than 43,756 registered owners in the non-public market of the city, who provided RMB9.6 billion registration fees and jobs for more than 150,000 people. During the first three seasons of 2013, the total tax amount reached RMB2.698 billion, increasing by 48.32% year on year, and took more than 94.06% of the entire municipal tax income. As the non-public economy becomes the important pillar of the economic development of Lhasa, the significant source of its financial and tax incomes, the great source of employment enlargement, and the overwhelming force of building harmony, it has also played significant roles in boosting the economy, people’s livelihood, employment and social stability.

With the continued development of the non-public economy, the political aspiration for wider participation has become even more specific and stronger for representatives from the non-public sectors. The municipal departments of Lhasa hence adopted such trend and proactively encouraged representatives from the non-public sectors to fulfill their aspiration. Through statistics have been incomplete, there is one representative at the 17th CPC National Congress among entrepreneurs from the non-public sector in Lhasa. Besides, there is also one representative at the 10th regional people’s congress, six representatives at the 10th municipal people’s congress, five representatives at the 9th municipal people’s congress, 29 members and eight standing committee members at the 10th CPPCC Municipal Committee, 28 members and three standing committee members at the 9th CPPCC Municipal Committee, 6 members at the 8th CPPCC Municipal Committee, and one member at the 7th CPPCC Municipal Committee. As the scale of political participation and discussion enlarges year by year, the representatives have enjoyed sound economic benefits, political reputation, social status, and momentum for development, which also make them dedicated to the great practice of building the new socialist Lhasa with both confidence and determination.

During the conference on Strengthening and Improving the New-era Work of the Federation of Industry and Commerce with the Leapfrog Development of the Non-public Economy, Qi Zhala, standing committee member of the CPC of Tibetan Autonomous Region and municipal party secretary of Lhasa, said, “The entire economic output of the non-public sector is expected to go through great improvement, we will also make breakthroughs in terms of increasing the proportion of the non-public sector in the entire economy, as well as enlarging the scale of the enterprises. By 2015, we intend to double the economic value added and the tax amount of the non-public sector compared with 2010, to increase the employment rate to 50% in the second and third industries, to add three more new listed companies, and to increase the economic output of the non-public sector to more than half of the entire economic amount.”

Sailing time comes the best with good wind; it is a great time for the economic development of Lhasa now. The non-public economy of Lhasa, growing in the spring breeze, will surely expect a fruitful and abundant harvest in autumn.