New legislation to boost private business

Similar steps are also being taken elsewhere in China.

On March 24, authorities in Yinchuan, capital of the Ningxia Hui autonomous region, announced several measures to improve the business environment and ensure high-quality development in the private economy.

Shaanxi and Hainan provinces have also recently announced measures to address key common issues that local enterprises are facing in improving the business environment and boosting innovative development by the private economy.

Such local government regulations are in line with the country's determination to enable private entrepreneurs to grow and thrive.

China's private enterprises will have a better environment and broader development space, Premier Li Qiang said at his first news conference as premier, following the conclusion of the first session of the 14th National People's Congress, China's top legislature, in mid-March.

The nation will continue to foster a market-oriented, law-based business environment in keeping with international standards, treat companies of all types of ownership as equals and protect the property rights of enterprises as well as the rights and interests of entrepreneurs in accordance with the law, according to Li.

At the national level, there have been growing calls for legislation for the development of the private economy. During this year's annual NPC session, the All-China Federation of Industry and Commerce proposed the formulation of a law on the promotion of the private economy and encouraging private enterprises to compete fairly with other business units.

According to the Ministry of Industry and Information Technology, private companies contributed about 50 percent of the country's tax revenue, 60 percent of GDP and 70 percent of technological innovation and accounted for 80 percent of urban employment in 2022.

The All-China Federation of Industry and Commerce, which serves the private sector, said that the number of private enterprises in the country had risen from 10.86 million in 2012 to more than 50 million last year.