(Yicai) March 4 -- China should help reduce companies’ overheads by adjusting electricity time bands, lowering export expenses and other methods, the chairman of Chinese battery manufacturer Tianneng Holding Group said yesterday, before the Two Sessions, the country’s annual policy-setting meetings, kick off today.

Production periods for many businesses fall during times when electricity prices are high, said Zhang Tianren, who will be attending the Two Sessions in Beijing as a deputy to the National People’s Congress. The peak and valley times need to be better co-ordinated with factories’ operating times to help off-set the high cost of electricity.

Electricity prices have been rising since 2021 due to market-oriented reforms, increased coal prices and other factors, Zhang said. More preferential policies, subsidies and fee deductions on energy prices should be given to micro, small and medium-sized companies. Private firms should be encouraged to enter the electricity trading market and the market-oriented reform of electricity should be further optimized.

The cost of exporting goods to foreign countries has surged due to soaring freight prices, shortage of shipping space on some routes and geopolitical issues, Zhang said. Better international communications and co-operation could improve shipping routes and schedules.

The global commodity price index sank 14.4 percent in November last year from the same period in 2022 to 164.45 meaning that firms were under less pressure sourcing raw materials, but prices are still high compared with a few years ago. If central government- and state-owned enterprises can supply more raw materials it will help companies cut costs, Zhang said.

It has become easier and less expensive for private firms to raise money in recent years, but some still have difficulties getting a high credit rating and providing collateral, Zhang said.

Editor: Kim Taylor