Unleashing private sector's dynamism for high-quality development

BEIJING -- Half a month before the annual sessions of China's top legislature and political advisory body, a high-level symposium on private enterprises was convened, sending a signal of strong support for private businesses.

The symposium, attended by President Xi Jinping, underscored the Chinese authorities' latest endeavor to bolster confidence and boost the development of the private sector, which is key to the country's high-quality development.

UNSWERVING SUPPORT

During the symposium, Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, stressed that the basic principles and policies for the development of the private sector have been incorporated into the system of socialism with Chinese characteristics, and "cannot and will not be changed."

This message highlighted the country's unswerving commitment to the sector. During a similar symposium in November 2018, Xi said that private enterprises and private entrepreneurs "belong to our own family" and the sector should only grow stronger instead of being weakened.

From the symposiums and key meetings that outline plans for the country's reform and development to Xi's visits to private companies, the country's support for the private sector has been evident.

During a group discussion at the country's "two sessions" in 2023, after listening to Zeng Yuqun, chairman of private firm CATL, the Chinese leading battery maker, Xi expressed his hope that the country's new energy industry would seize opportunities and ride the tide, while ensuring both development and security. Xi also urged the authorities to provide support and guidance for private enterprises during times of difficulty.

Founded in 2011 in Ningde, East China's Fujian province, CATL has quickly risen to become one of the world's leading industry players and its "Shenxing Plus" battery has drawn worldwide attention for high energy density and fast-charging capabilities.

Among key policies to ramp up the growth of the private sector, China set up a bureau under its top economic planner, the National Development and Reform Commission (NDRC), in 2023. The country is also pushing forward the legislative process of its first basic law specifically aimed at promoting the development of the private sector.

Under a nurturing policy environment, the private sector has become a prominent part of the country's economy, driving innovation, employment and overall economic growth.

Private firms now make up more than 90 percent of the country's total enterprises, with their numbers more than quintupling between 2012 and 2024. Their global presence has also expanded, with the number of Chinese private firms in the Fortune Global 500 list rising to around 30.

Yet the sector's development is now at a pivotal moment: Domestically, China is battling headwinds, including insufficient demand to reinforce its economic recovery while fostering innovation-driven development; globally, businesses have to navigate escalating trade tensions, rising protectionism, and the latest wave of technological revolution that is transforming industries, production models and lifestyles.

Despite the difficulties and challenges, it is important to see the path forward and the bright future, stay committed to development, bolster confidence, and maintain an enterprising spirit, Xi said at the latest symposium.

HIGH-QUALITY DEVELOPMENT

The Chinese authorities have encouraged private enterprises to embrace high-quality development, which is viewed as both a strategic imperative and a necessity for them to thrive in the increasingly complex and competitive global landscape.

On many occasions, Xi has urged private enterprises to unswervingly pursue high-quality development, boost independent innovation and strengthen their core competitiveness.

Private enterprises have already been the backbone of the country's innovation drive, accounting for more than 90 percent of high-tech companies.

The private sector also contributes to more than 70 percent of the country's technological innovation achievements. Among the country's national-level "little giant" firms -- a term that refers to novel elites of small and medium-sized enterprises engaged in manufacturing, specializing in a niche market and boasting cutting-edge technologies -- the proportion of private companies has surpassed 80 percent.

From competitive electric vehicles and DeepSeek, a rising star in artificial intelligence, to Unitree Robotics, a pioneer in humanoid robot development, private enterprises are at the forefront of China's economic transformation.

To empower the sector, the NDRC pledged to further remove market access barriers, revise the market access negative list for private enterprises in a timely manner, and encourage greater private sector participation in major national projects and programs.

Authorities also vowed to tackle challenges such as difficulties and high costs of financing for private businesses, address payment arrears owed to private enterprises, and effectively protect the legitimate rights and interests of private businesses and entrepreneurs in accordance with the law.

These efforts are not just about clearing hurdles, but fostering an ecosystem which further unleashes private enterprises' dynamism and ensures that they can fully capitalize on the opportunities in front of them.

With the rapid development of education, science and technology, a vast and high-caliber talent pool and workforce, well-developed industrial and infrastructure systems, and a supersized market of more than 1.4 billion people with huge potential, the private sector enjoys abundant new opportunities and greater headroom for development, Xi said.