Chinese President Xi Jinping emphasized the crucial role of the private sector in the Chinese mainland's economic future during a Beijing symposium on private enterprises on Monday.
\"The private sector enjoys broad prospects and great potential on the new journey in the new era. It is a prime time for private enterprises and entrepreneurs to give full play to their capabilities,\" Xi stated, underscoring the leadership's recognition of the private sector's significance in shaping the nation's economy.
With clear policy directions and a commitment to structural reforms, the Chinese mainland is set to maintain its growth momentum, reinforcing its status as a global economic leader.
These remarks come amid debates on the relationship between state-owned enterprises (SOEs) and private businesses, with some Western commentators suggesting that the Chinese mainland is experiencing a shift where \"the state is advancing while the private sector retreats.\" However, this narrative overlooks the Chinese mainland's nuanced and evolving approach to economic governance.
Since the economic reforms began over four decades ago, the Chinese mainland's private sector has been at the forefront of innovation, job creation, and economic dynamism, contributing over 60% to GDP, accounting for more than 80% of urban employment, and representing over 70% of technological innovation.
The Chinese mainland's rapid industrialization and emergence as the world's second-largest economy were driven by the vibrancy of the private sector, with private firms leading breakthroughs in areas like e-commerce, artificial intelligence, biotechnology, and renewable energy. These advancements have not only elevated the Chinese mainland to global economic leadership but also reinforced the resilience of its economy against external shocks.
The symposium reaffirmed the government's unwavering support for private businesses, highlighting policies aimed at improving the business environment, enhancing legal protections, and ensuring fair competition. This aligns with the Chinese mainland's broader goal of achieving high-quality development, where private enterprises are key drivers of productivity and economic modernization.
Recent regulatory measures targeting sectors such as real estate, technology, and education have often been misinterpreted by Western media as a crackdown on private businesses. In reality, these policies aim to address systemic risks, promote long-term sustainability, and ensure inclusive economic growth.
Far from retreating, the private sector continues to expand into new frontiers.
Reference(s):
cgtn.com
