With more than 90% of China’s businesses falling under the private sector, the country’s top economic planners are now placing private enterprise at the center of economic revival efforts.
By addressing financing bottlenecks, overdue payments, and legal uncertainties, China aims to solidify private business as a cornerstone of innovation and growth.
In a decisive push to rejuvenate its economic engine, China has rolled out a series of targeted reforms aimed at empowering the private sector, which contributes over 70% of the nation’s technological innovation and accounts for the vast majority of enterprises nationwide.
According to Liu Min, deputy head of the Private Economy Development Bureau under the National Development and Reform Commission, the new initiatives focus on easing financing hurdles, enhancing legal protections, and promoting greater private participation in national projects. Liu shared the details during the latest edition of China Economic Roundtable, a talk show hosted by Xinhua News Agency.
Central to these reforms is a proposed Private Economy Promotion Law, currently under review by lawmakers, which would mark the first dedicated legislation for private sector development in China. The government is also cracking down on overdue payments one of the sector’s biggest complaints by increasing penalties for defaulters, especially where private firms are owed.
Beyond legal protections, the government is bolstering communication with entrepreneurs through a newly launched service platform. Since December, the platform has logged 180,000 visits and received nearly 2,000 submissions from businesses seeking policy input and raising issues such as IP rights, production resources, and payment delays.
The reforms come on the heels of a high-level symposium on private enterprises held in February, reflecting Beijing’s strategic emphasis on leveraging the sector to stabilize employment, accelerate innovation, and lift overall economic confidence.
As global economic competition intensifies, China’s renewed focus on private enterprise signals a shift from state-dominant narratives to a more inclusive growth model, where entrepreneurs are seen not just as participants but as key drivers of the country’s economic future.
