From local to global: How Chinese private firms are reshaping innovation, standards and culture

Editor's note: This article is written by Wang Xiaoyi, professor at Zhejiang University School of Management and researcher at the Zhejiang Research Base of the Chinese United Front Theory Research Society. It reflects the author's opinions and not necessarily the views of CGTN.

Over the past five years, Chinese private enterprises have gradually transitioned to high-end manufacturing and services, becoming a key force in reshaping the global industrial innovation landscape.

In an uncertain global economy, China's private sector demonstrates strong resilience

Amid a volatile global economic environment, Chinese private enterprises have adeptly seized opportunities in emerging markets. In the first half of 2025, their import and export volume reached 12.48 trillion yuan ($1.74 trillion), up 7.3 percent year on year, accounting for 57.3 percent of the country's foreign trade, an increase of 2.3 percentage points from the same period last year. Over the last five years, private enterprises have climbed the value and supply chains, shifting from low-profit assembly to innovation-driven growth, fostering numerous "specialized, sophisticated, distinctive, and novel" enterprises and "little giants." This resilience and vitality stem from the entrepreneurial spirit, injecting momentum into China's economy and offering valuable insights for global recovery.

Market vitality of private enterprises: pragmatism breaking tech monopolies 

Chinese private enterprises contribute over 60 percent of GDP, 70 percent of innovations, and 80 percent of urban employment. Their scale advantage enables agile responses to market demands, focusing growth through technological integration and actively investing in global talent, excelling in high-end fields. This foreshadows their role in reshaping the global industrial landscape with greater cohesion and explosiveness. In artificial intelligence, for example, DeepSeek launched the R1 large language model in early 2025, with a training cost of just $5.6 million, yet excelling in efficiency and long-context reasoning. Huawei invested 179.7 billion yuan in research and development (R&D) in 2024, holding the top share of 5G standard essential patents globally and achieving the HarmonyOS independent operating system. The innovative vitality of private enterprises is not only the engine of economic development but also a catalyst for democratizing global technological progress.

Breakthroughs in high-end manufacturing: global practice of sustainable development

In high-end manufacturing, Chinese private enterprises have solidified their dominance through continuous R&D investment and technological breakthroughs. For instance, in new energy vehicles, BYD captured 18 percent of the global EV market in 2024 through self-developed automotive-grade chips and the "overseas warehouse + China-Europe freight train" supply chain system, promoting electric vehicle adoption worldwide and aiding sustainable development. At the 2025 Spring Festival Gala, Unitree's H1 robot dazzled audiences with synchronized dances, highlighting China's leap in robotics technology. Private enterprises have transformed from followers to global standard-setters, propelling electric vehicles, smart equipment, and green energy worldwide.

Expansion in services: cultural confidence and humanistic care

The services sector is another highlight where Chinese private enterprises drive global innovation, embodying a graceful blend of cultural confidence and humanistic care. The animated film "Nezha 2" is a prime example, integrating cutting-edge narratives and visual effects to convey Chinese stories while balancing local appeal and global acceptance, like a beam of Eastern light illuminating the world cultural landscape. SHEIN, as a fast fashion leader, achieved revenues of $38 billion in 2024, covering over 220 countries and regions, reshaping the fashion service ecosystem through data-driven supply chains and zero-inventory models. Private enterprises are reshaping the global cultural services landscape, not only disseminating Chinese culture but also providing high-quality content to emerging markets.

Looking ahead: sustained momentum and global contributions

Over the past five years, Chinese private enterprises have demonstrated the tremendous achievements of China's economic development, contributing to building a community with a shared future for humanity. This heralds a more inclusive and sustainable global future, where, under the guidance of the entrepreneurial spirit, Chinese private enterprises are bound to write more legendary chapters.