Private enterprises vital part of Chinese economy

On Nov 24, the official website of the National Development and Reform Commission launched a microsite for its newly established Private Economic Development Bureau.

For the whole year, to promote the development of private enterprises and boost entrepreneurs' confidence, the State Council, China's Cabinet, and various ministries and commissions have held intensive symposiums to listen to the opinions and suggestions of enterprises. The Private Economic Development Bureau was established against this background and has become a specialized department serving the development of private enterprises.

The private economy is an important foundation for stabilizing the economy, and it is crucial to improve the investment environment and stimulate the vitality of private investment. Private enterprises contribute more than 60 percent to China's GDP, absorb more than 70 percent of migrant workers, provide 80 percent of urban jobs, and 90 percent of jobs in emerging sectors. The tax revenue from private enterprises accounts for more than 50 percent of the total tax paid by enterprises.

China's private economy has maintained a relatively high speed of development, and the active private economy that is moving toward high-quality development has consolidated the resilience of China's economy and boosted confidence in its prospects.

In the first three quarters of this year, 17.2 million new individual businesses were established nationwide, up 11.7 percent year-on-year; 46,586 new foreign-invested enterprises were established, exceeding the level of the same period before the COVID-19 pandemic; and 7.07 million new private enterprises were established, up 15.3 percent year-on-year.

Since the beginning of this year, with the rise of artificial intelligence technology, many Chinese technology companies have joined the research and development competition. The market responsiveness and innovative vitality are the advantages of China's private enterprises.

Private enterprises are an important force in China's economic restructuring and industrial upgrading. The government needs to provide support to boost their vitality, create a more standardized and inclusive development environment and maintain market order, and encourage private enterprises to continue to develop through innovation.

- 21st Century Business Herald