China's unswerving support for the private sector will significantly boost confidence and expectations among entrepreneurs, and revitalize the growth of the world's second-largest economy, while motivating private enterprises to play a bigger role in driving technological innovation and industrial upgrades, said economists, industry experts and company executives on the sideline of the ongoing two sessions.
They noted that the country has sent a strong signal that it is dedicated to fostering the healthy and high-quality development of the private sector by rolling out targeted measures to deal with the difficulties and issues faced by private enterprises, and create a fairer and more dynamic business environment.
Highlighting that private enterprises have become the main force in nurturing new quality productive forces, and promoting the development of strategic emerging industries and future-oriented industries, they called for more efforts to further ease market access restrictions, expand financing channels for private enterprises and reduce financing costs, as well as optimize policies on tax and fee reductions.
▲ Engineers train a humanoid robot to gather information at a robot factory in Shanghai on Feb 18. Tang Yanjun/China News Service
Their comments came after President Xi Jinping attended a symposium on private enterprises and delivered an important speech in Beijing last month.
During the symposium, Xi, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, said the new journey in the new era has provided abundant new opportunities and greater space for the development of the private sector, and it is a prime time for private enterprises and entrepreneurs to give full play to their capabilities.
This year's Government Work Report stated that China will take solid steps to implement policies and measures designed to spur the growth of the private sector, effectively protect the lawful rights and interests of private enterprises and entrepreneurs in accordance with the law, and encourage private enterprises with appropriate conditions to institute and refine modern corporate systems with distinctive Chinese features.
Lu Zhe, chief economist at Soochow Securities, said the high-level meetings conveyed a positive message that the country encourages and supports the development of the private economy, which is of vital significance in stimulating market vitality and boosting economic growth momentum.
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Accelerating the legislative process for private economy promotion law, strengthening the protection of legitimate rights and interests of private businesses and entrepreneurs, as well as regulating the law enforcement related to enterprises will be a focus on supporting the development of the private sector," Lu said.
Huang Hanquan, head of the Chinese Academy of Macroeconomic Research, said that China's top leadership has stressed the need to address the difficulties faced by private enterprises in obtaining affordable financing and further open up the competitive areas of infrastructure to various business entities, which will help shore up business confidence, stabilize market expectations and create more development space for private enterprises.
Huang said China has made great strides in comprehensive strength, technological capability and economic prowess, with a continuously improving talent pool and an immense market demand created by its large population. "All of these factors have created golden opportunities for the growth of private enterprises," he noted.
▲ A woman shakes hands with a humanoid robot from Unitree Robotics during the Global Developer Conference in Shanghai on Feb 21. Hector Retamal/AFP
Qi Xiangdong, chairman of cybersecurity company Qi-Anxin Technology Group, who attended the symposium, said the Chinese top leadership's remarks have significantly inspired his enthusiasm for entrepreneurship and boosted the company's confidence in overcoming difficulties, while "giving private enterprises great reassurance and encouraging us to roll up our sleeves and continue to work hard".
Qi said the combination of AI with a wide range of industries will give birth to new application scenarios and new business models.
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As a company in the cybersecurity field, we will focus on our core business through technological innovation, and make greater contributions to the building of China's strength in cyberspace and the development of the digital economy," Qi added.
Emphasizing that private enterprises play a significant part in fostering new quality productive forces, Qi said his company will step up original and pioneering sci-tech innovation, as well as reinforce fundamental research in AI to drive industrial transformation and upgrading.
Nan Cunhui, chairman of Chint Group, a leading Chinese smart energy solutions provider, said the symposium, which was held at a critical juncture, has far-reaching influence.
It reaffirms the major achievements made by private enterprises and their great contributions to China's economic and social development, underscoring the country's continued efforts to bolster the growth of the private sector, Nan, who had attended the symposium, said.
"Specifically, the meeting has set a direction for the healthy and high-quality development of the private economy now and in the future, and has firmed up the confidence of entrepreneurs to deal with internal and external challenges," he added.
Looking ahead, Nan said, inspired by the top leadership's remarks, his company will make greater efforts to foster new quality productive forces and promote the integration of emerging industries with cutting-edge technologies such as AI, the internet of things and big data.
Chint is ramping up efforts to expand its presence in strategic emerging industries like graphene new materials and hydrogen power, Nan said, adding it will constantly cultivate new industries, new models and new growth drivers that feature green, low-carbon and sustainable characteristics.
Private companies have become a key driving force behind China's economic ascent over the past decades, and the backbone of the nation's innovation drive. They contribute more than 60 percent of GDP, 70 percent of technological innovation and 80 percent of urban employment, official data show. By the end of September 2024, the country's 55 million registered private enterprises made up over 92 percent of all businesses in China.
