Private firms turn key to innovation, jobs

China's private enterprises cemented their position as the country's main engine of innovation, jobs and green transition in 2024, accounting for more than 90 percent of high-tech firms and emerging as the largest contributor to high-tech trade for the first time.

The findings were part of the latest report by the All-China Federation of Industry and Commerce at its executive committee meeting that ended on Tuesday in Changsha, Hunan province.

According to the report, private companies greeted 48.5 percent of China's high-tech product imports and exports last year, while more than 70 percent increased their research and development spending.

R&D expenditure among the top 1,000 private firms reached 1.43 trillion yuan ($196 billion), with 112 companies ranking among the world's top 1,000 corporate R&D investors.

Private firms also accounted for over 80 percent of China's little giant companies listed on the Shanghai STAR Market, reinforcing their role in developing what policymakers called new quality productive forces.

Employment remained another pillar of the private sector's contribution. Nearly 34,000 surveyed firms employed a combined 12.75 million workers, with more than 71 percent reporting stable or rising staff numbers.

Private enterprises continued to absorb large numbers of university graduates, supported by a nationwide initiative that has generated more than 10 million job opportunities, the report said.

On the environmental front, 84.2 percent of China's top 500 private companies advanced green or low-carbon transition strategies last year. More than half of surveyed firms took part in ecological protection or climate change mitigation, while 4,676 companies were included in official green manufacturing lists, including 911 national-level green factories.

Philanthropy and social responsibility also featured prominently. Over 16,500 surveyed private firms engaged in charitable activities in 2024, contributing to investment promotion, disaster relief and other public welfare efforts.

ACFIC President Gao Yunlong said: "Recent policies, including a new law promoting the private economy and measures to encourage innovation and reduce barriers, have created unprecedented opportunities for private businesses."

"Private firms are expected to strengthen confidence, step up technological innovation and play a bigger role in building a modern industrial system and supporting regional development."