China Boosts Private Sector with New Development Policies

CHONGQING, China — In a bid to enhance the growth of its private sector, the Chinese government has implemented a range of supportive policies, as confirmed during a recent symposium attended by President Xi Jinping. Held on February 17, 2025, the symposium highlighted a promising outlook for private enterprises, emphasizing their crucial role in driving the economy forward.

President Xi’s speech signaled renewed confidence in the private sector, drawing attention from global investors. He stated, ‘On the new journey of the new era, the private economy has broad development prospects and immense potential.’ This strong endorsement comes amid an international climate filled with uncertainties, positioning China as a vital engine for global economic stability.

According to the Chongqing Development and Reform Commission, the economic value added of the city’s private sector reached 1.98 trillion yuan (about $273 billion) in 2024. The commission noted that private enterprises now account for a substantial 92.3 percent of all registered businesses in China, underscoring their dominance and significance in the national economy.

The Chinese government is actively promoting legal frameworks and dedicated institutions to support private sector growth, enabling enterprises to operate on a larger scale. ‘The basic principles and policies regarding the development of the private sector cannot and will not be changed,’ emphasized President Xi, assuring stakeholders of the stability of economic policies moving forward.

On the ground, companies like BYD are contributing significantly to sectors like new energy vehicles through innovation and research. Other enterprises, such as New Hope Group in agriculture, are revitalizing traditional industries by adopting new technologies. The ability of these companies to innovate is seen as a key driver of China’s economic progress.

Efforts to solidify the Chengdu-Chongqing Economic Circle, which is set to collaborate on 320 key projects this year, further illustrate the government’s commitment to enhancing the regional economy. Over 70 percent of these projects focus on modern infrastructure and strategic industrial systems, aiming to establish a nationally influential science and technology innovation center.

These collaborative projects are expected to yield significant advancements in infrastructure, digital economies, and improved living standards. As noted in a report by the National Development and Reform Commission, the Chengdu-Chongqing region produced 8.19 trillion yuan ($1.13 trillion) in revenue in 2023, constituting 6.5 percent of the national economy.

Among the planned initiatives are the establishment of advanced manufacturing clusters and improvements to transportation, energy, and water infrastructure. The focus on building a modern industrial system aims to create an environment conducive to both domestic and international enterprise.

The international community is watching closely as China continues to navigate its path toward high-quality economic development. Analysts describe a new generation of entrepreneurs as ‘born global,’ capitalizing on the vast domestic market while also seeking expansion into international markets. ‘China’s dynamic private sector reflects the resilience of its economy and promises significant opportunities for the future,’ remarked one international analyst.