The annual Central Economic Work Conference was held in Beijing from December 11 to 12, with Chinese President Xi Jinping delivering an important speech. The conference underscored high-quality development as a top priority for 2025, emphasizing the need for deeper reforms in key areas and advancing high-standard opening-up. It also highlighted the importance of supporting private enterprise growth and fostering a world-class business environment that is market-oriented, law-based, and internationalized.
With the rapid development of China’s economy and shifts in the global economic landscape, some Western countries have speculated that the Chinese mainland’s market economy has stalled. However, recent developments tell a different story.
In recent years, China has made remarkable strides in optimizing its business environment, achievements that have been widely recognized by the international community.
According to CEOWORLD magazine’s 2024 ranking of the best countries in the world to invest in or do business, the Chinese mainland ranks 34th. The assessment covers 11 key indicators, from the level of corruption and various degrees of freedom to the rationality of the tax system and quality of life. China’s continuous efforts in these areas have provided a more stable, transparent, and predictable investment environment for global investors and entrepreneurs.
On the domestic front, China is streamlining administration, delegating powers, and improving regulation. By simplifying approval processes, reducing the cost of starting a business, optimizing market supervision, and facilitating easier business registration, the country has fostered a more conducive environment for economic entities.
Data shows that as of the end of September 2024, there were over 180 million private economic entities in China, accounting for 96.37 percent of the total number of business entities. This represents a year-on-year growth of 3.93 percent and a remarkable increase of more than four times over the past decade.
Among these entities, there were 55.5 million private enterprises, up 6.02 percent year on year. The number of individual businesses reached 125.3 million, a year-on-year increase of 3.03 percent. These figures fully demonstrate the significant improvement in China’s business environment and the unleashing of market vitality.
As a crucial part of China’s market economy, the private sector plays an irreplaceable role in promoting economic growth, boosting employment, and optimizing industrial structure. China places great importance on the development of the private economy and has continued to promote equal protection of all types of economic entities in accordance with the law. By making it easier for private operators to register and increasing their proportion in the economy, China has fully released the vitality of the market.
In terms of industrial structure, the private economy is key to many industries such as services and manufacturing. For instance, in China’s wholesale and retail industry, private businesses make up a whopping 97.97 percent of operations. Serving as a bridge linking production with consumption, the high proportion of private businesses in this sector reflects China’s vibrant commodity market.
China’s commitment to fostering a market-oriented, law-based, and internationalized business environment continues to attract global investors and entrepreneurs. As the nation advances towards high-quality development, the thriving market economy is poised to play an even more significant role in the global economic landscape.
Reference(s):
cgtn.com
