China to Boost Private Economy with New Measures, Officials Say

Chinese officials have reaffirmed their commitment to revitalizing the private economy by implementing additional measures. This comes in response to the issuance of a guideline by the Communist Party of China Central Committee and the State Council, which focuses on promoting the growth of the private economy. During a press conference, Li Chunlin, the deputy head of the National Development and Reform Commission, highlighted the vital role the private economy plays in the country’s development. It has been instrumental in stabilizing economic growth, fostering innovation, creating job opportunities, and enhancing the overall quality of life for citizens.

To ensure the effective implementation of the guideline, the commission will collaborate with relevant stakeholders to introduce supportive policies and measures in the near future. One of the key measures to be introduced is a document aimed at encouraging private investment. By facilitating greater investment in the private sector, China aims to unlock its full potential and further contribute to the nation’s economic growth.

The commitment to the private economy extends beyond policy-making. The commission plans to regularly hold symposiums with private entrepreneurs, providing them with a platform to voice their concerns and suggestions. This collaborative approach demonstrates the government’s willingness to actively engage with the private sector and address any challenges they may face.

The significance of the private sector in China’s economy cannot be understated. It currently contributes approximately 50% of the country’s tax revenue, 60% of its GDP, and plays a pivotal role in driving technological innovation, accounting for 70% of such developments. Moreover, the private economy is responsible for 80% of urban employment, making it a crucial engine of job creation and economic prosperity.

To create a more favorable environment for the private economy to thrive, China is determined to eliminate market access barriers and ensure fair competition. The government’s commitment to fully implementing relevant policies and mechanisms underscores its determination to create a level playing field for private enterprises.

An Lijia, vice chairman of the All-China Federation of Industry and Commerce, emphasized the importance of fostering a supportive social environment for the private economy. To achieve this, the government plans to promote outstanding private entrepreneurs and celebrate their entrepreneurial spirit. Additionally, the authorities will actively combat malicious rumors and smears that may undermine private enterprises’ reputation and prospects.

The private sector in China primarily comprises small and medium-sized enterprises (SMEs), accounting for over 90% of the private economy. Recognizing the significance of SMEs, Xu Xiaolan, vice minister of industry and information technology, announced plans to continue facilitating financing for these businesses. As of the end of June, outstanding inclusive finance lending to small and micro-sized companies had reached a substantial 27.7 trillion yuan (approximately $3.88 trillion), marking a noteworthy 26.1% year-on-year increase.

China also seeks to encourage eligible SMEs to go public, providing them with access to more significant capital and resources for expansion. To bolster the growth of start-ups, the government plans to encourage further investment from the national SME development fund.

A central goal for the Chinese government is to create a market-oriented, legalized, and international business environment that supports micro, small, and medium-sized enterprises. By fostering an environment conducive to entrepreneurship and growth, China aims to unlock the full potential of its private economy and propel the nation’s economic development to new heights.