More targeted support for private sector needed: China Daily editorial

Recent policy actions, including the National Development and Reform Commission's on-site meeting in Changsha and NDRC head Zheng Shanjie's remarks at a service sector private enterprise symposium, signal more targeted support for the private sector.

The on-site meeting, held on Thursday and Friday, served as a platform to translate the recommendations of the 20th Central Committee of the Communist Party of China for formulating the 15th Five-Year Plan (2026-30) for national economic and social development into concrete measures.

Attended by representatives of central ministries, local governments, financial institutions and private enterprises, the meeting emphasized three core pillars for growth of the private sector: widening market access, strengthening factor support and protecting legal rights. That is a testament to the private sector's status as the "ballast" of the Chinese economy. The private sector accounts for over 90 percent of the total business entities in China, more than 80 percent of urban employment and over 70 percent of sci-tech innovations.

As highlighted at the meeting, the recommendations propose a long-term mechanism for private enterprises to participate in major national projects, a move aimed at reversing the declining share of private investment in such projects and rekindling market-driven investment dynamism. This aligns with the plan's commitment to building a unified national market, breaking down market entry barriers and ensuring fair competition for all business entities.

The two-day meeting in Changsha reinforced this principle, with the Supreme People's Court and the Ministry of Justice presenting measures to optimize the business environment, including cracking down on irregular law enforcement and protecting property rights. These steps are critical to boosting private entrepreneurs' confidence, which is essential for driving innovation and investment in emerging sectors such as artificial intelligence, new energy and biomedicine — areas where private enterprises have emerged as key players.

The Recommendations also stress the legal foundation for private sector development, with the implementation of the private sector promotion law as a cornerstone. The law aims to ensure that private enterprises enjoy equal treatment in market access, resource allocation and policy support — an issue that has long been a pain point for private businesses.

Unlocking the vitality of the private sector requires both top-down policy design and bottom-up engagement. The meeting included project matchmaking and financial support initiatives. Notably, over 200 projects open to private capital were showcased, spanning manufacturing, logistics, energy and agriculture, while financial institutions launched tailored products such as patent-backed loans and sci-tech innovation credit lines to address the financing challenges faced by private companies.

At the service sector private enterprise symposium, Zheng elaborated on the NDRC's strategy to support private enterprises during the next five years, emphasizing the need for regular government-enterprise communication to promptly address the concerns of private enterprises, a commitment that echoes the focus of the recommendations on protecting the legitimate rights and interests of private entrepreneurs through strengthened judicial oversight and standardized law enforcement.

Zheng stressed that the high-quality development of the service sector — covering industries from logistics to digital culture and healthcare — is integral to stabilizing employment, expanding investment and improving people's livelihoods. He pledged that the NDRC would refine institutional mechanisms and policy support for the service sector, deepen industry-education integration and promote the integration of modern services with advanced manufacturing.

For private businesses the next five years represent a time of opportunity to participate in national strategies such as urban renewal and rural vitalization, to leverage the technological revolution and to tap into China's super-large domestic market.

In essence, the central authorities' vision for the private sector is clear: to foster an environment where private enterprises can thrive alongside State-owned and foreign-invested firms, contributing their dynamism to China's journey toward socialist modernization. And with targeted policies to ensure equality, protect rights and encourage innovation, China will be better-positioned to unleash the full potential of its private sector — turning ambition into action and confidence into growth.