Machinery Manufacturing Industry How to Get Rid of Crisis

China's manufacturing industry has a close relationship with the private economy. Many manufacturing problems are also problems of the private economy. As the mainstay of the private economy, medium, small and micro enterprises are mostly second-tier enterprises. The quality of their operations also directly affects the entire manufacturing industry. According to statistics, China's GDP grew by 7.4% year-on-year in the third quarter of 2012, which is the lowest economic growth data since the second quarter of 2009.

At present, the development of private economy faces unprecedented difficulties. Although the manufacturing crisis has become very apparent in high-end industries such as steel, shipbuilding, photovoltaics, and construction machinery, it is worrying that the problems faced by small and medium-sized private enterprises in recent years have not improved. The phenomenon of production cuts and production cuts in private enterprises across the country has increased, and some export-oriented companies have witnessed layoffs and closures. This phenomenon is also being transmitted to large and medium-sized enterprises.

At present, it is urgent to develop the private economy in the following areas: First, to reduce the tax burden on private enterprises (especially small and micro enterprises). It is necessary to make adjustments as soon as possible on tax items, tax rates, and detailed regulations concerning private enterprises. For example, the scope of identification of small and micro enterprises may be appropriately improved; administrative charges for small and micro enterprises may be cancelled or halved; a certain percentage of depreciation rate may be increased to reduce the tax base, and consideration shall be given to the appropriateness of turnover tax Relief; for tax-free start-up private enterprises, give it a long enough incubation period.

Second, to improve the financing environment of private enterprises and solve the dilemma of “not getting into and not being able to afford”. China's bank loans are mainly allocated to large and medium-sized enterprises, and private small enterprises only account for 20%. In addition, private enterprises can not basically enjoy the benchmark interest rate when they borrow, and they must pay more floating interest, which increases the financing costs of private enterprises.

Third, encourage private investment to enter monopoly areas. It is necessary to create a fair market environment for private enterprises and encourage private capital to participate in infrastructure construction and public services by means of sole proprietorship, equity participation, holding, and franchising.