Private enterprise symposium signals bright future for China's private economy

Editor's note: The article, written by Ma Xiaobai, a director and researcher at the Development Research Center of China's State Council and Liu Yumeng, a PhD candidate at Renmin University of China, reflects the authors' opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity. 

On February 17, 2025, a symposium on private enterprises was held in Beijing.

Top officials at the meeting fully affirmed the crucial position and role of the private economy in China's reform and opening-up as well as socialist modernization. This reflects the attention and emphasis that the Central Committee of the Communist Party of China (CPC) and State Council have placed on private enterprises and the private economy. 

This sent a strong signal for promoting the high-quality development of the private economy in China.

First, it was emphasized that the CPC and the state's fundamental policies toward the development of the private economy remain consistent, providing reassurance to private entrepreneurs. 

Since the 18th National Congress of the CPC, the CPC Central Committee and the State Council have attached great importance to the development of the private economy. 

At this symposium, China reiterated its strong commitment to the development of both the public and non-public sectors, fully affirming the importance of the private economy and the significant contributions it has made, and also making a clear statement.

Second, the private economy in China has a solid foundation and vast potential for future development. 

Currently, China's private sector has grown to a considerable scale, contributing over 50 percent of tax revenues, more than 60 percent of GDP, over 70 percent of technological innovations, over 80 percent of urban employment and accounting more than 90 percent of business entities across the country.

The private economy has become the ballast of the national economy, playing an irreplaceable role in stabilizing growth, promoting innovation, ensuring employment and improving people's livelihoods. 

As China's reform and opening-up deepen further, the talent quality continues to improve and the industrial and infrastructure systems become increasingly sound. 

Against this backdrop, the private economy has a bright future and vast growth potential.

Third, it can be observed from enterprises participating in this symposium that the CPC Central Committee has high regard for "new quality productive forces" and technological innovation and is confident in the development in these fields. 

Six private entrepreneurs spoke at the symposium, offering their views and suggestions on how to promote the development of private enterprises under the new circumstances, with five of them from the tech sector. 

The attendees were not all large corporations. 

For example, young entrepreneurs in the fields of intelligent robots and artificial intelligence participated. 

While their enterprises are still modest in size and output, they hold great promise for future growth. They are poised to make technological breakthroughs in key areas and develop global competitiveness.

Moving forward, it is expected that the government will introduce a series of policy measures to further support the development of the private economy. 

First, the legislative process for the private economy will be expedited. The Standing Committee of the 14th National People's Congress (NPC) will hold its 14th session from February 24 to February 25 in Beijing. 

The deliberation of the draft private economy promotion law has been included on the agenda for the 14th session as proposed at the meeting of the Council of Chairpersons of the NPC Standing Committee. 

Second, efforts will be focused on addressing challenges faced by private enterprises, including unequal access to production factors, obstacles to partaking in market competition, difficulties in financing and high financing costs, late payments, unauthorized fees, unauthorized fines, arbitrary inspections and unauthorized seizures. 

Third, a cordial and clean relationship between government and business should be further established. The committees of the CPC and governments at all levels must ensure the effective implementation of policies without compromise.

Looking ahead, the Chinese government is encouraging private enterprises and entrepreneurs to maintain a patriotic commitment, dedicate themselves to development, operate lawfully and with business acumen, and work to ensure prosperity for all. 

In doing so, private enterprises will make greater contributions to advancing Chinese modernization. With the revitalization of the private economy, China's economy will achieve solid and sustainable progress.