After several years of tax and fee reduction policies, Chinese enterprises' macro tax burden continues to decline. However, they still face high cost pressure. The labor costs, raw materials and logistics costs, marketing costs, tax and regulatory costs, financing costs, and uncertainty costs brought about by public risks have all increased.
The article points out that private enterprises are facing the reality of intense market competition, rising costs, and falling profits. Cost control is the foundation of private enterprises' development strategy. Therefore, it is necessary to design the cost control strategy which aligns with the enterprise's lifecycle to ensure its continuous operation. At the same time, in order to solve the current bottlenecks, private enterprises should promote entrepreneurial spirits, play an active role, have a long-term vision, and create new competitive advantages.
Finally, the article points out that solving the problem of cost pressure requires the joint efforts of the government, enterprises, and the market, and proposes three suggestions further.
1. The reform and open up of the national macro industrial policy should be deepened.
2. Private enterprises should firstly establish a correct awareness of cost management, maximize their advantages on innovation, and explore their own development path using limited resources.
3. For the government, implementing policies accurately is important to the cost reduction of private enterprises.
