Private sector economy prioritized at two sessions

China's latest efforts to develop the private sector economy will greatly stimulate higher-quality development of private enterprises and their market vitality, which will further support stabilizing the nation's economic fundamentals this year, said company executives and industry experts at the ongoing two sessions on Tuesday.

They made the comments as President Xi Jinping reaffirmed the nation's unwavering support for the private sector, pledging steps to bolster confidence among private businesses and entrepreneurs, reduce their burdens and promote their healthy and high-quality growth, during a joint group meeting with national political advisers on Monday.

"The remarks showed that China's efforts in driving the growth of the private sector is long-term strategy rather than a stopgap measure. It will stabilize expectations and confidence of private enterprises, and furthermore, economic growth over the long term," said Qu Yongyi, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences.

Specifically, Xi encouraged private businesses to transform their pattern of growth, adjust their industrial structure, focus on their main business portfolios and follow a path of high-quality development.

Capable businesses should enhance their independent innovation and contribute more to the nation's science and technology self-reliance as well as the commercial application of research outcomes, Xi said.

Wang Qinghai, chairman of JCHX Mining Management Co Ltd, a listed Chinese mining services provider, said: "The remarks have set private enterprises at ease, seeing that such support has been and will be consistent. They also point the direction of how a private traditional company can transform to achieve high-quality development."

To pursue high-quality development, Wang said that JCHX has made great efforts in shifting from simply being a mining contractor in the domestic market to a one-stop mining solutions provider with a presence in many countries and regions involved in the Belt and Road Initiative.

"Inspired by such efforts, the company will insist on mine construction and contract mining as its core business development foundation, and meanwhile transform to expand the industrial chain to equipment manufacturing, scientific and technological research, resource development and trading."

Zeng Yuqun, a member of the 14th National Committee of the Chinese People's Political Consultative Conference, and founder and chairman of Contemporary Amperex Technology Co Ltd, the world's largest electric vehicle battery supplier, said, "We are inspired to give full play to our policy advantages and market advantages to accelerate the development of new technologies and applications of new products."

According to the Ministry of Industry and Information Technology, private enterprises have contributed about 50 percent of the country's tax revenue, 60 percent of gross domestic product, 70 percent of technological innovation and 80 percent of urban employment.

At the ongoing two sessions in Beijing, a group of the country's lawmakers and political advisors have also submitted multiple proposals on the future development of private enterprises. The All-China Federation of Industry and Commerce, for instance, proposed to make a national law to promote the private sector economy.

Pi Jianlong, a CPPCC National Committee member and head of Beijing Jintai Law Firm, said: "There are certain deficiencies in the protection and support of the private sector economy in current laws, especially a lack of legislation. Seen from a market perspective, private enterprises still face invisible barriers to industry access, especially in sectors such as finance, petroleum and electric power."