China’s top leaders have pledged unwavering support for the private sector, recognizing its crucial role in driving technological innovation and stabilizing economic growth.
At the Central Economic Work Conference held in mid-December to set economic priorities for 2025, officials called for the rollout of a private sector promotion law and a campaign to standardize law enforcement involving enterprises. This move signals a strong commitment to fostering a favorable environment for private businesses.
Chinese lawmakers are currently deliberating a draft of the country’s first basic law specifically focused on private sector growth. This legislation is expected to significantly optimize the development environment for private enterprises and propel high-quality economic growth.
The private sector in China has been a powerhouse, contributing 48.6% of foreign trade, 56.5% of fixed-asset investment, 59.6% of tax revenue, over 60% of GDP, more than 70% of technological innovations, and over 80% of urban employment. These impressive figures highlight the sector’s integral role in the nation’s economy.
China’s top 500 private enterprises have been at the forefront of technological innovation. Total valid patents held by these companies increased from 633,922 in 2021 to 666,667 in 2023. Last year, 17 of these top enterprises invested over 10 billion yuan (approximately $1.37 billion) each in research and development. These investments span sectors such as computers, communications, electronic equipment manufacturing, internet and related services, and automobile manufacturing.
With continued government support and the proposed legislation, China’s private sector is poised to make even greater contributions to technological advancements and economic growth in the coming years.
Reference(s):
Private sector's potential to foster new quality productive forces
cgtn.com
