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Private sector key to high-quality growth

By Xu Xiaofang | China Daily | Updated: 2025-02-21 07:41
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JIN DING/CHINA DAILY

President Xi Jinping delivered the keynote speech at a symposium of private business leaders in Beijing on Monday, highlighting the huge potential for the development of the private sector. He said this is the right time for private enterprises and entrepreneurs to showcase their talents and drive high-quality development.

The chiefs of some of China's largest private companies, including Huawei CEO Ren Zhengfei, BYD Chairman Wang Chuanfu, New Hope Group Chairman Liu Yonghao, Will Semiconductor Chairman Yu Renrong, Unitree Robotics CEO Wang Xingxing and Xiaomi CEO Lei Jun, spoke on how to develop the private economy by overcoming challenges.

The symposium demonstrated the government's commitment to support and reinforce the role of the private sector. The private enterprises' meeting held in 2018 had highlighted two key points: the government's unwavering commitment to develop both the public and private sectors, and ensure the private sector remains an integral part of the national economy.

Monday's meeting, reiterating the government's commitment, also made sure private enterprises advance Chinese modernization, while affirming the government's pledge to further improve the business environment for private enterprises. The discussions boosted the confidence of entrepreneurs, while injecting new momentum into the private sector, demonstrating that "high-quality development" is an integral part of Chinese modernization's blueprint.

Private enterprises have played a pivotal role in the success of reform and opening-up. Private enterprises, accounting for more than 90 percent of all enterprises in China, contribute substantially to the country's GDP, employment and technological advancement. And favorable government policies can help the private sector thrive and innovate.

Monday's meeting also highlighted several critical areas for future development — including breakthrough areas of "hard technologies" such as 5G, semiconductors, artificial intelligence and electric vehicles — to help achieve the government's goal of building a modern, high-quality economy.

The discussions at the meeting pivoted to the issue of the autonomy of China's industry and supply chains, sharpening China's global competitive edge, and promoting technological innovation to develop new forms of production, emphasizing the importance of encouraging private enterprises to pursue self-reliance and become more resilient in strategic industries in order to foster innovation-driven businesses.

The meeting underscored the government's commitment to ensure the private sector gets equal access to production factors such as land, capital and labor, so as to help it thrive in a business environment that is fairer and more equitable.

The meeting also called for the robust implementation of policies to help the growth of private enterprises, while stressing the need to ensure the efficient implementation of government support policies, essential for fostering the development of the private sector.

Another major theme that emerged at the meeting was the emphasis on law and institutional guarantees, necessary for optimizing the business environment, and the need to guarantee legal protection for private businesses, particularly in areas related to IPR and fair market access. In this regard, strengthening the rule of law will help address problems such as unfair competition, and violation of property rights.

Moreover, the business leaders said financial support, through both increased access to credit and innovative financing mechanisms, was key to reducing the short-term difficulties faced by private companies.

The meeting also discussed the issue of delayed payments to private companies, which has often hindered their growth. The importance of ensuring private businesses receive payments on time was highlighted as a major priority for boosting the health of the private sector.

Moreover, the meeting underscored the need to take measures to protect private businesses' legal rights and build a level playing field, while stressing the importance of using good business practices such as fair inspection, and doing away with arbitrary fees and fines.

The need to create an effective government-business relationship was also discussed at the meeting, under which local governments would have to devise tailored, localized policies that reflect the unique conditions of their regions while adhering to national policies. By identifying and addressing the challenges and opportunities unique to different regions, and by using tailored solutions to the problems plaguing the private sector, the government can help private enterprises to thrive.

Later, many entrepreneurs said the meeting boosted their confidence and will help them expand their businesses, while acknowledging that the policies laid out would support and encourage private companies to make greater strides in both domestic and global markets. The meeting, they said, had strengthened their resolve to pursue high-quality development, and contribute more to China's economic transformation.

In the short term, the meeting will benefit private enterprises by boosting market confidence and strengthening the legal framework that underpins China's economic model. In the long run, it will serve as a catalyst, helping China transition from being a "manufacturing giant" to an innovation pioneer in intelligent manufacturing, driving economic restructuring, increasing resilience, and boosting competitiveness. In short, the meeting reinforced the importance of nurturing the private sector and ensuring its continued growth so it can contribute more to the nation's future.

The author is a professor at the Business School, Beijing Technology and Business University.

The views don't necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.

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