China's private sector sees sustained robust growth in 2024

China's top economic planner, the National Development and Reform Commission (NDRC), released data on Tuesday indicating robust growth and sustained development in the country's private sector.

The government agency also highlighted a series of initiatives to encourage the participation of private enterprises in major national strategic projects.

According to the NDRC, there are now more than 55 million private enterprises in China, accounting for 92.3 percent of all businesses. Total import and export volume of these private enterprises has seen an annualized increase of 11.1 percent, representing 55 percent of China's total foreign trade, underscoring the high-quality development of China's private sector.

The NDRC emphasized its commitment to addressing issues faced by the private sector, enhancing the country's business environment, and expedite the enactment of the law on promoting the development of the private economy. Efforts are underway to establish a long-term mechanism for private enterprises to participate in major national projects.

Experts noted that since the resolution adopted after the third plenary session of the 20th Central Committee of the Communist Party of China, private enterprises have thrived due to targeted policy support, benefiting from new technologies that bolster their market position and development prospects.

The third plenary session has offered targeted support for China's private sector, which significantly motivated private businesses' development, Zhou Rong, a senior researcher at the Chongyang Institute for Financial Studies at Renmin University, told the Global Times.

The success of private businesses can be attributed to China's improved economic environment and supportive policies harnessing technology advances in the private sector, Cao Heping, an economist from Peking University, told the Global Times.

As China's private enterprises become increasingly mature and technological sophisticated, many are entering stages of high-quality, high-tech development, fueling the development of the country's new quality productive forces, Zhou added.

The NDRC pledged to encourage private companies to actively participate in major national strategic projects, such as infrastructure, and the country's push for industrial upgrade and equipment renewal. It has also identified a list of 189 key private investment projects for 2024, spanning industries such as manufacturing, transportation, and agriculture.

In a related development, China approved five new nuclear power projects, including 11 nuclear power units on Monday, with significant private capital involvement.

Multiple governmental bodies have also responded by strengthening the management of private capital in the nuclear power sector. The NDRC announced on Tuesday plans to further encourage private investment in critical areas like nuclear power and railway construction. The National Energy Administration will refine mechanisms for private sector involvement in nuclear power projects.

With advancements in technology and research capabilities, private enterprises are expected to play a larger role in pioneering science and technology projects, offering the potential for significant technology breakthroughs, Cao said.