How Chinese private enterprises thrive in high-quality development

Editor's Note: Chen Yuwen is a researcher at the International Cooperation Center of the National Development and Reform Commission. The article reflects the author's opinions and not necessarily those of CGTN.

On November 1, 2018, a symposium on private enterprises outlined six policy measures: reducing tax and fee burdens, financing difficulties and high costs, fostering a fair competition environment, improving policy implementation, establishing a new type of cordial and clean government-business relationship, and protecting entrepreneurs' personal safety and property. Responding to the core concerns of businesses, these measures charted the path for the high-quality development of the private economy. Over the past eight years, private enterprises have forged ahead with pioneering determination, driving the continuous expansion of the private sector, which has become a vibrant driving force in advancing Chinese modernization.

The private sector constitutes an integral component of the socialist market economy. China adheres to the basic economic system with public ownership playing the dominant role and diverse forms of ownership developing side by side, and regards the promotion of the sustained, sound and high-quality development of the private economy as a major long-term policy of the state. Its importance is reflected in solid, tangible contributions. Private enterprises currently account for more than 50% to imports and exports and tax revenue, as well as more than 80% of urban employment. These contributions link the broader picture of national development with the daily lives of millions of households. The private sector is a key force in stabilizing growth, promoting innovation, creating jobs and improving people's well-being.

Sustained economic growth depends on the vitality of market entities. China's private sector has now reached considerable scale and plays a significant role in the economy. Private enterprises account for more than 92% of all enterprises nationwide. More than 420,000 private enterprises have been recognized as national high-tech enterprises, also accounting for over 92% of the total. In foreign trade, statistics from the General Administration of Customs show that private enterprises' share of China's total imports and exports rose from 39.7% in 2018 to 57.3% in 2025. They have remained China's largest foreign trade entity for seven consecutive years since 2019. The expanding number of private enterprises and growing trade volume demonstrate their resilience in exploring new markets and navigating challenges, providing vital support for economic growth.

Innovation momentum relies on the proactive exploration and sustained investment of private firms. According to State Administration for Market Regulation (SAMR) data, by the end of April 2026, the number of private enterprises in the "four new" sectors – new technologies, new industries, new business formats and new business models – reached 24.619 million, accounting for 40.3% of all private enterprises. Meanwhile, data from the Ministry of Industry and Information Technology (MIIT) shows that China has cultivated over 17,600 national-level "Little Giant" enterprises specializing in sophisticated, cutting-edge, distinctive and innovative products, more than 90% of which are private businesses. Private enterprises are also actively contributing to major national science and technology initiatives. In September 2026, LandSpace successfully completed China's first large-scale satellite internet constellation deployment mission undertaken by a private commercial space enterprise. Moreover, private enterprises have been deeply involved in a number of major technological initiatives, making sustained breakthroughs in fields such as commercial spaceflight, semiconductor materials, new energy, high-end medical equipment, the seed industry and precision components, continuously turning technological advances into growth momentum.

The ultimate gauge of job creation and public well-being is the people's sense of gain. In terms of employment absorption, data from the All-China Federation of Industry and Commerce (ACFIC) indicates that the private economy provides over 80% of urban employment. In the first half of 2025 alone, 151,000 private enterprises participated in the "100 Cities, 1,000 Universities, 10,000 Enterprises" employment promotion initiative, yielding employment intent agreements with 472,000 college graduates. Regarding rural revitalization, as of October 2025, private enterprises nationwide had implemented 42,000 projects under the "10,000 Enterprises Revitalizing 10,000 Villages" initiative, investing over 110 billion yuan (about $16.5 million), creating jobs for 109,000 surplus rural workers and 14,000 low-income rural residents. Through industrial development and job creation, private enterprises are broadening income channels for rural residents.

Institutional guarantees provide strong backing for the high-quality development of private enterprises. In August 2024, the Regulations on Fair Competition Review officially came into effect, eliminating local protectionism and sectoral monopolies at the administrative regulation level. The negative list for market access was pared down from 151 items in 2018 to 106 in 2025, a reduction of nearly 30%. In February 2025, another symposium on private enterprises was convened, stressing that we must take solid steps to implement policies and measures for promoting the development of the private sector. On May 20, 2025, the Private Economy Promotion Law came into force, explicitly establishing principles of equal treatment, fair competition, equal protection and common development, ensuring fair market access and protecting corporate property rights and the legitimate interests of entrepreneurs. Translating legal protections into daily business practices opens broader horizons for private enterprise growth.

Practice over the past eight years has demonstrated that the Party Central Committee's commitment to the "two unswervings" is a fundamental guarantee of the private economy's vigorous development. This means unswervingly consolidating and developing the public sector, while encouraging, supporting and guiding the development of the non-public sector. It also involves fostering a fair market environment for competition and protecting the lawful rights and interests of private businesses in accordance with the law. The dynamism and creativity of the private sector reflect the vitality of China's socialist market economy and offer an important window into the country's journey toward modernization.