New market entity data show vitality

China registered 13.28 million new market entities in the first half, with private and foreign-invested firms maintaining steady momentum and cultural industries posting the fastest growth, the State Administration for Market Regulation said on Tuesday.

Private enterprises took the spotlight, with 4.35 million new registrations, up 4.6 percent year-on-year. Foreign-invested firms also rose 4.1 percent year-on-year to 33,000.

Such momentum underscored improving market sentiment and investor confidence, reinforcing China's status as a key global investment destination, industry experts said.

Since the beginning of this year, China has unveiled a robust package of policies to stabilize foreign capital inflows and boost long-term investment amid rising global economic uncertainty.

The country's tax authority, for example, launched a new tax credit policy aimed at encouraging foreign investors to reinvest their profits in the country. The policy allows eligible investors to offset Chinese tax liabilities if they commit to keeping the investment in China for at least five years.

Li Xuhong, a professor at the Beijing National Accounting Institute, said: "Such efforts reduce the tax burden on foreign enterprises and support the stable development of China's economy. At the same time, it sends a strong signal that China welcomes long-term investment."

Data from the SAMR also showed that by sector, 601,000 new market entities were created in primary industries such as agriculture, 965,000 in manufacturing and other secondary industries, and 11.71 million in the services sector.

New economy firms, which mainly refer to those companies engaged in new technologies, industries, business formats and models, reached 25.36 million nationwide by the end of June, up 6.6 percent year-on-year and accounting for 40.2 percent of all registered enterprises.

Notably, the cultural sector stood out as a bright spot in consumption growth, buoyed by the global popularity of domestic intellectual property such as Pop Mart collectibles. New registrations in culture, sports and entertainment surged 17.5 percent year-on-year, the fastest among all major industries.

In the realm of pop culture, Chinese brand Pop Mart has become a global sensation, with fans lining up outside stores eager to get their hands on the latest trendy Labubu figurines.

Hu Zuohao, a professor at the School of Economics and Management at Tsinghua University, said that the popularity of domestic brands like Pop Mart exemplifies how cultural and design premiums are reshaping the value structure of Chinese manufacturing.

"Brands like Pop Mart demonstrate that meeting consumer demand for special innovative products is the best way to boost business. This is China's new consumption era, when people are boosting consumption but also promoting smarter, deeper and more meaningful consumption," Hu said.

chengyu@chinadaily.com.cn