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By Yuan Dongming, Shao Ruchen & Song Bingxiao, Research Team on “Major Issues in State-owned Enterprises’ Reform”, Enterprise Research Institute, DRC

Research Report, No.159, 2018 (Total 5434) 2018-9-19

Abstract: This paper, based on China’s economic growth and corporate development in the past three decades, focuses on Zhejiang province’s economic development and analyzes the characteristics of different types of enterprises’ growth in different stages as well as their contributions to economic growth. Research findings show that during the two stages from low income to low-and-middle income, and from low-and-middle income to middle-and-high income, the increased number of small-and-medium-sized companies have made key contributions to the rapid economic growth as major bolsters. In the period from middle-and-high income to high income, large enterprises have replaced the diminished number of small-and-medium-sized companies in the traditional sectors, and facilitated economic growth through high efficiency, fine quality and upgraded structure. China has crossed the threshold from low income to middle-and-high income and gradually to high income. The key to maintaining economic growth momentum is to cultivate a batch of globally competitive top enterprises by enabling more and more small-and-medium sized companies to become large enterprises, and sharpening their competitive edge in global competition so as to let them lead the overall upgrading of the industry and national economy.

Key words: initial growth, sustainable growth, experience of Zhejiang province