Editor's note: Ullattil Manranjith is a senior business editor with CGTN Global Business. The article reflects the author's opinions and not necessarily the views of CGTN.

As the dust settles from the latest Central Economic Work Conference, a clearer picture of China's 2026 economic direction is emerging. The government appears to be moving from offering short-term reassurance to the private sector toward building a longer, more stable partnership. The message is straightforward: Businesses will have a stronger place in the national plan if they are committed to shared long-term goals.

This shift is already noticeable in business circles. Entrepreneurs are increasingly talking about the need for "solid ground." One automation company owner remarked that his biggest challenge is not attracting customers or talent but knowing that the rules will remain stable. Predictable policies, he said, make it possible to plan years ahead and focus on innovation. Many others share this view.

China's growth model has long rested on cooperation between the state and private enterprises. The government has built the roads, ports, and power grids – the essential framework of development – while companies have filled those spaces with goods, services, and innovation. In recent years, though, new regulations in technology and education introduced periods of adjustment. These measures were designed for long-term balance but have created what many describe as a "clarity gap," a sense of uncertainty about how the private sector should move forward.

The 2025 Conference, supported by the new Private Economy Promotion Law, aims to narrow that gap. Its first goal is to strengthen the legal foundation: Protecting property rights and intellectual assets so that companies can invest with confidence. The message is clear – ownership and innovation will be protected, turning hesitation into commitment.

The second goal is to deepen cooperation. Private firms are being invited to participate in major national projects such as renewable energy, telecommunications, and modern transport. Rather than remaining on the sidelines, businesses are expected to help design and implement core elements of future growth.

What is taking shape is a more collaborative model. It is neither market-led nor state‑driven alone, but a shared structure designed for coordination. It can be compared to a research park where different teams pursue distinct goals but share infrastructure and a common vision. In industries such as smart manufacturing and biotechnology, this cooperation is already visible – merging private agility with public direction.

To make this system effective, clarity and fair competition are essential. Stable standards allow the most capable and efficient firms to thrive. In return, companies are expected to align more closely with national objectives. The focus is not on control but on creating conditions for innovation within predictable boundaries.

At the same time, the responsibilities of the private sector are expanding. The new model places greater value on credibility, transparency, and compliance. Companies that can combine technological strength with sound governance are more likely to benefit from emerging opportunities. For investors, consistency in implementation matters as much as the policies themselves.

Local governments will also be central to translating broad goals into practical measures. Clear communication between regulators and businesses – on licensing, investment processes, and innovation incentives – will determine whether this partnership model succeeds. Policy stability must be matched by consistent enforcement at the local level to maintain trust.

The wider test will be whether this approach can sustain growth while encouraging innovation in key sectors. As the Chinese economy shifts toward technology, green energy, and advanced manufacturing, coordination between public planning and private creativity is becoming increasingly important. Shared investment in skills, infrastructure, and research can support new industries without relying on short-term stimulus.

For many entrepreneurs, trust remains the deciding factor: Trust that promises will be kept, laws consistently applied, and the policy environment predictable. If that trust strengthens, investment confidence is likely to return, unlocking growth that has been cautious in recent years.

Ultimately, this stage in policy evolution is less about sweeping changes than about reliability and follow-through. The priority is to restore a sense of certainty through clear rules and cooperation. If both government and business maintain steady communication and shared purpose, this model could mark a more balanced phase of China's development – one built on mutual confidence rather than constant recalibration. The coming year will test how effectively these intentions translate into everyday practice, and whether stability can truly become the foundation for renewed economic momentum.