The Qiushi Journal, a flagship magazine of the CPC Central Committee, recently published an important article authored by General Secretary Xi Jinping on promoting the healthy and high-quality development of the private sector. Since the beginning of the new era, China’s private sector has embraced unprecedented development opportunities amid historic transformations, becoming a vital force in high-quality economic growth. As a key component of the socialist market economy, it has demonstrated remarkable resilience and vitality in the building of a modern economic system.

Since the 18th CPC National Congress, the number of private enterprises has grown steadily, rising from 10.857 million in 2012 to 56.707 million at the beginning of 2025, accounting for more than 92% of all enterprises in the country. Meanwhile, the combined revenue of China’s top 500 private firms climbed from 10.58 trillion yuan in 2012 to 41.91 trillion yuan in 2023, marking a significant strengthening of their overall capacity.

At present, private enterprises make up over 80% of the nationally recognized “little giant” firms—specialized, high-end, innovation-driven small and medium-sized enterprises (SMEs)—and more than 92% of the country’s high-tech enterprises. With accelerating progress in digital, intelligent, and green transformation, they have become a major driver of industrial innovation and structural upgrading.

In areas such as taxation, investment, and employment, the private sector’s pivotal role is likewise evident. During the poverty alleviation and rural revitalization campaigns, millions of private enterprises actively participated in targeted poverty reduction and rural construction, helping tens of millions of people improve their lives. Shi Jinchuan, director of the Center for Research of Private Economy at Zhejiang University, noted that the innovation model of Chinese private enterprises has transitioned from the “imitation-digestion-reinnovation” model to a new phase of “global absorption and original empowerment,” with some firms already leading in specific global industrial sectors.

Data indicates that the private sector has contributed over 50% of China’s tax revenue, more than 60% of its GDP, over 70% of technological innovations, over 80% of urban employment, and more than 90% of new urban jobs. It has become a crucial cornerstone driving the nation’s high-quality economic development and promoting common prosperity, as well as a key force advancing Chinese modernization.

The Party and the state have always attached great importance to the development of the private sector. Since the 18th CPC National Congress, a series of supportive policies have been implemented, covering legal safeguards, market access, factor support, and innovation guidance, among other areas.

Legally, the Company Law and the Anti-Monopoly Law have been revised and improved, the Regulations on Improving the Business Environment came into effect in 2020, 31 measures for the private economy were introduced in 2023, and the Private Economy Promotion Law was promulgated in 2025. Additionally, the Supreme People’s Court issued 25 judicial guidelines, elevating equal access and property rights protection to the level of legal institutions.

The market environment has also seen steady improvement, with the “negative list” for market access undergoing four rounds of streamlining, reducing the number of restricted items from 151 to 106. Sectors such as telecommunications, film and television, and pharmaceuticals have been fully opened, effectively implementing the principle of “permission unless prohibited.”

In terms of factor support, financial institutions are now assessed based on their services to private enterprises, inclusive finance has been widely promoted, and large-scale tax and fee reductions have been continuously implemented. The regulations on ensuring timely payments to SMEs have been strictly enforced, establishing a long-term mechanism to prevent payment delays and effectively alleviating difficulties in accessing affordable financing.

Regarding innovation, private enterprises are encouraged to lead major national sci-tech projects, promote the open sharing of research facilities, and expand into strategic emerging industries and digital fields.

“Through policy coordination and institutional deepening, China has consistently stabilized market expectations, boosted development confidence, and safeguarded corporate rights, continuously unleashing the robust momentum of the private economy in the process of Chinese modernization,” stated Wu Weixing, president of Capital University of Economics and Business.

Today, private enterprises have become a vital force in technological innovation. From Wolong Holdings in Zhejiang Province achieving breakthroughs in robotic joint modules and co-developing industrial AI models, to CATL in Fujian researching high-energy-density batteries, and Shengquan Group in Shandong producing biodegradable materials from crop straw, private enterprises are injecting new momentum into building both a technologically strong and ecologically beautiful China, thanks to their market vitality and innovative resilience.

In the new era, the private economy boasts vast opportunities and immense potential. Huang Jun, a professor from the School of Applied Economics at Renmin University of China, emphasized that private enterprises, with their flexible mechanisms, agile market responsiveness, strong drive for innovation, efficient technology transfer, excellent cost control, and optimized resource allocation, are well-positioned to thrive in technology-driven sectors.

In cutting-edge fields such as AI and 5G communications, private enterprises are gradually shifting from technology adoption to independent and original innovation. In terms of consumption upgrading, as consumer preferences become more diversified, personalized, and quality-oriented, private enterprises are swiftly adapting to meet people’s aspirations for a better life, continuously launching new products and services aligned with market trends, Huang added.