The Vital Role of China's Private Sector for Economic Priorities in 2026 and Beyond

In a recent article by CGTN, the essential contributions of China's private sector are highlighted as it plays a pivotal role in achieving the country's current economic priorities. The article emphasizes notable achievements made by private enterprises over the past year and outlines their unique strengths in innovation, market responsiveness, and entrepreneurial spirit, facilitating growth in consumption, technological advancements, and the opening of the economy. These elements collectively support China's high-quality development.

Key Achievements in Private Enterprises

The past year has witnessed dynamic advancements across various sectors powered by private companies. Notable examples include the rapid development of domestic generative artificial intelligence models such as DeepSeek and Seedance, which have received global interest. Similarly, the video game "Black Myth: Wukong" and the Labubu dolls have drawn attention due to their intellectual property protections, showcasing the international market's interest in Chinese products.

Additionally, breakthroughs in humanoid robotics technology, particularly by firms like Unitree Robotics and the swift evolution of commercial space travel marked by the launch of the reusable Zhuque-3 rocket, underscore the robust progress made within China's private sector.

Private Sector as a Pillar of High-Quality Development

Last year, during a symposium about private enterprises held in Beijing on February 17, President Xi Jinping highlighted the significance of the private economy as a driving force for high-quality development and modernization in China. He pointed out the vast growth prospects and immense potential of the private sector, deeming it the ideal time for private companies and entrepreneurs to realize their capabilities.

In a newly published article addressing crucial tasks for China's current economic policy, Xi reiterated that domestic demand will remain a primary focus in building a strong internal market. The article cites Xi's speech during the Central Economic Work Conference in December of the previous year, emphasizing the necessity for strengthening innovation-driven growth to accelerate new engines of growth while continuing to open the economy for multilateral cooperation in various realms.

Given its scale, important role in the economy, and strengths in innovation, rapid market responsiveness, organizational flexibility, and entrepreneurial spirit, the private sector is poised to be a vital player in realizing these priorities.

Driving Consumption, Innovation, and Economic Openness

According to Bai Chong-en, Dean of the School of Economics and Management at Tsinghua University, private enterprises are more attuned to emerging shifts in consumer demand, enabling them to promptly provide products and services that align with new trends. He indicated that the private sector holds a substantial edge in spurring innovation, particularly in pioneering and less explored domains.

For instance, the food delivery giant Meituan has pioneered new models for instant deliveries in cities by launching 64 drone delivery routes and completing over 600,000 orders in the past year. Likewise, Wenzhou Runxin Machinery has developed fully automated control valves for water treatment systems, responding to the rising demand for high-quality devices. In the first half of 2025, private enterprises accounted for 71.7% of national sales revenue.

Currently, private firms make up over 92% of China's high-tech businesses. With a strong market orientation and technological acuity, they rapidly identify demand and expedite the commercialization of innovations. Longyu Robotics, for instance, has developed critical technologies for heavy autonomous transport vehicles, breaking foreign technological barriers. DJI has emerged as a global leader in drone manufacturing, bolstered by its insightful market recognition and continuous investment in research and development.

In addition to stimulating consumption and innovation, the private sector can play an even greater role in China's ongoing globalization. Despite the challenging conditions in global trade, private enterprises accounted for 57.3% of total trade last year, solidifying their status as the largest participants in China's foreign trade for seven consecutive years. Increasingly, private companies are expanding their international operations and deepening global cooperation in areas such as green economy, digital economy, and maritime pursuits.

In his latest article, President Xi also underscored the importance of strengthening regulatory frameworks and policies to support the Private Economy Promotion Law enacted in May last year. Enhanced political backing is anticipated to further optimize the business environment and empower private enterprises to play an even more significant role in fulfilling the nation's future economic priorities.

For further insights, readers can access the full article on CGTN's official platform: CGTN Article.