China's private sector continues to be a powerhouse in driving the nation's economic expansion, contributing 60% to the GDP and accounting for 80% of urban employment. In 2024, the Chinese mainland is set to further bolster this vital sector through a series of strategic initiatives and supportive policies.
High-quality manufacturing, investment, job creation, and innovative technologies spearheaded by private enterprises have been integral to China's growth alongside the state sector. The government's commitment to fostering entrepreneurship and implementing a new development philosophy aims at national rejuvenation and robust country-building.
In the first 11 months of 2023, imports and exports by Chinese private enterprises surged by over 6.1% year-on-year. Simultaneously, private investment, excluding real estate, witnessed a 9.1% increase year-on-year, highlighting the sector's resilience and dynamism.
To sustain this momentum, China has outlined six key steps to enhance private sector development: accelerating legislative procedures, enhancing communication, strengthening analysis, attracting private finance, encouraging excellent practices, and improving work systems. These measures are designed to create a more conducive environment for private businesses to thrive.
The People's Bank of China (PBOC) is playing a pivotal role by steadily increasing lending to private companies. Lu Lei, deputy governor of the PBOC, emphasized the progress made in supporting the private sector through capital support, services for small businesses, expanded financing channels, easier access to bonds for private enterprises, and improved cross-border financing facilities to attract foreign capital.
At a recent conference in Jinjiang, Fujian Province, Zheng Shanjie, head of the National Development and Reform Commission, encouraged private investors to engage in national projects such as railways, nuclear power plants, water conservancy, and ecological protection. He also highlighted the importance of financing and project recommendations in facilitating this participation.
Furthermore, the Chinese government is urging private enterprises to expedite digital transformation and increase investment in research and development to drive high-quality growth. Efforts to attract both local and international investments, develop infrastructure, ensure a continuous power supply, and create a business-friendly climate are central to these initiatives.
Private sector investments remain crucial for socio-economic progress, production, employment, and the distribution of essential goods, complementing the public sector's role in governance. With ongoing support and strategic policies, China's private sector is poised to sustain and enhance the nation's economic achievements in 2024 and beyond.
Reference(s):
Private sector development to keep Chinese economy afloat in 2024
cgtn.com
