On February 17, China held a high-level symposium on the private economy in Beijing, where Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee and Chinese president, met with prominent private entrepreneurs from key industries. Delivering a keynote speech at the symposium, Xi pledged that China will continue to boost the private sector and will make concrete efforts to implement policy support measures.
In late 2018 when the first such symposium was held, months after the US launched a trade war against China, China was challenged by abrupt shockwaves in the international trade environment amid rampant skepticism over its ability to stabilize the economy. Chinese entrepreneurs are now much better positioned to face the challenges.
Over the past year, private enterprises spearheaded pivotal breakthroughs in several industries. Black Myth: Wukong, China’s debut AAA game, emerged as a groundbreaking domestic title with truly global market appeal. This was followed by the AI model DeepSeek, which sparked international attention for its high performance and dramatically reduced costs, reshaping the landscape of global AI sector. Beating US sanctions to continue releasing phone models equipped with advanced chips, Huawei reclaimed the top spot in the Chinese smartphone market from Apple in 2024.
While the symposium six years ago served to encourage the private sector to be better prepared for a gathering storm, this year it recognized and honored the achievements and contributions of private enterprises in promoting innovation-driven growth.
Compared to 2018, there were more representatives from companies that thrive on hi-tech advancement, which demonstrates the top leadership’s strong commitment to the much-championed new quality productive forces, and the expectations for the private sector to play a big role in achieving these goals. The six business leaders who gave speeches at the symposium came from the telecommunication, electric vehicle, robotics, semiconductor and agriculture sectors.
Xi reiterated that the Party and the country are committed to unswervingly consolidating and developing the public sector and encouraging, supporting and guiding the development of the private sector. Stressing there are “broad prospects and great potential” for the private economy, Xi said that “it is a prime time for private enterprises and entrepreneurs to give full play to their capabilities.”
On the second day, the National Development and Reform Commission, the country’s top economic planning agency, disclosed that a new negative list for market access would be released soon to open more sectors to private enterprises, which account for 92 percent of China’s total businesses. The National People’s Congress (NPC) Standing Committee, China’s top legislature, held the second reading of the country’s first draft private economy promotion law on February 24 and 25, after the first reading in December 2024. An NPC spokesperson said “prompt deliberation and adoption” of the law would be made after further revisions.
Challenged by persistent economic challenges at home and an escalating trade war with the US, the moves send a clear message that China is well aware that a strong private sector is essential for achieving technological innovation and obtaining a sustainable development.
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