China is taking significant steps to bolster its private economy with the drafting of a Private Economy Promotion Law. Discussed at the 13th session of the Standing Committee of the 14th National People’s Congress in Beijing from December 21 to 25, this initiative reflects the government’s keen attention to the development of the private sector and marks a new stage in its evolution.
The private economy is a vital component of China’s market system and a significant force driving economic and social development. By the end of September 2024, over 55 million private enterprises and 125 million individual businesses were registered nationwide. This data underscores the vitality of the private economy and its irreplaceable role in the national landscape.
Private enterprises have become a significant engine of economic growth. Under the innovation-driven development strategy, these businesses, with their keen market sense and flexible institutional advantages, have become the main force in technological innovation and industrial upgrading.
The private sector is also the primary channel for employment, absorbing a substantial labor force and alleviating employment pressures. Moreover, private enterprises contribute a considerable portion of national tax revenue, providing strong support for fiscal balance and public services.
Demonstrating unique flexibility and resilience, private businesses have been pivotal in responding to challenges across various industries. From communications facilities and the digital economy to electric vehicles and household appliances, they are driving the advancement of China’s productive forces.
Recognizing the crucial role of the private economy, China attaches great importance to its healthy and sustainable development. The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) in July proposed formulating a private economy promotion law. This move not only affirms the status of the private economy but also provides legal protection for its future growth.
The recent Central Economic Work Conference further emphasized the introduction of the Private Economy Promotion Law, highlighting China’s determination and strategic considerations. Since the reform and opening up, the private economy has achieved remarkable progress. Establishing this law will consolidate reform achievements, address concerns, and boost confidence in the development of the private sector.
Reference(s):
cgtn.com
