In the past five years, Chinese private firms have moved up the value chain, shifting from low-profit assembly to innovation-driven manufacturing and services. This evolution has positioned them at the forefront of global industrial innovation.
Resilient Growth in a Volatile Economy
Amid global uncertainty, private companies in the Chinese mainland saw their import and export volumes hit 12.48 trillion yuan (US 1.74 trillion) in H1 2025, up 7.3% year on year. They now account for 57.3% of the foreign trade of the Chinese mainland, an increase of 2.3 percentage points from last year.
Powering Innovation & Employment
Private firms contribute over 60% of GDP, 70% of new patents, and 80% of urban employment in the Chinese mainland. Their agility allows rapid responses to market demands, with big investments in R&D and global talent.
In AI, DeepSeek introduced the R1 large language model in early 2025 with just 5.6 million dollars in training costs, outperforming peers in efficiency and long context reasoning. Meanwhile, Huawei poured 179.7 billion yuan into R&D in 2024, securing the largest share of 5G standard essential patents worldwide and launching the HarmonyOS independent operating system.
High-End Manufacturing & Sustainability
In new energy vehicles, BYD captured 18% of the global EV market in 2024 by developing its own automotive-grade chips and using an overseas warehouse and China Europe freight train system. This model is boosting EV adoption and greener transport worldwide. At the 2025 Spring Festival Gala, Unitree stunned viewers with its H1 robot performing synchronized dances, showcasing leaps in robotics technology.
Expanding Services with Cultural Confidence
The services sector is booming too. Animated film Nezha 2 combines advanced visuals with Chinese storytelling, winning audiences at home and abroad. Fast fashion platform SHEIN recorded 38 billion dollars in revenue in 2024, reaching over 220 countries and regions with a data driven supply chain and zero inventory model.
A Glimpse Ahead
With strong entrepreneurial spirit and bold innovation, private enterprises in the Chinese mainland are not only driving economic growth but also contributing to a more inclusive, sustainable global future. Their rise offers fresh insights on resilience and collaboration in an uncertain world.
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Chinese private firms shift toward high-end manufacturing & services
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