China is bolstering its private sector to sustain and accelerate economic growth in 2024. As the private sector contributes 60% of the nation’s GDP and 80% of urban employment, its development is crucial for China’s economic vitality.
In the first 11 months of 2023, Chinese private enterprises saw a 6.1% year-on-year growth in imports and exports, while private investment rose by 9.1%, excluding real estate. Recognizing this momentum, the Chinese government has outlined six strategic steps to further boost private sector development. These include accelerating legislative procedures, enhancing communication, strengthening analysis, attracting private finance, encouraging best practices, and improving work systems.
The People’s Bank of China (PBOC) has committed to steadily enhancing lending to private companies. Lu Lei, deputy governor of the PBOC, highlighted efforts to provide capital support and services for small businesses, expand financing channels, facilitate private enterprises’ access to bond markets, and improve cross-border financing convenience to attract foreign capital.
During a conference in Jinjiang, Fujian Province, Zheng Shanjie, head of the National Development and Reform Commission, urged private investors to participate in national projects such as railways, nuclear power plants, water conservancy, and ecological and environmental protection. He emphasized the provision of financing support and project recommendations to facilitate their involvement.
The Chinese government’s consistent support aims to enhance the business climate, policy framework, funding avenues, legal guarantees for development, and fair competition. By encouraging private enterprises to expedite digital transformation and invest more in research and development, China seeks to promote high-quality growth within the private sector.
This concerted effort to boost private sector development is not only about economic metrics but also about fostering entrepreneurship for national rejuvenation and building a strong country. The government’s initiatives underscore the vital role of private investments in socio-economic progress, production, employment, and delivering essential goods to the populace.
As China continues to attract local and international investments, develop infrastructure, ensure continuous power supply and utilities, and create a business-friendly environment, the private sector is poised to play a pivotal role in keeping the Chinese economy on a robust growth trajectory in 2024.
Reference(s):
Private sector development to keep Chinese economy afloat in 2024
cgtn.com
