#China #Beijing #Private Sector #Economic Policy

The Crucial Role of China's Private Sector

As China approaches 2026, its private sector is emerging as a pivotal player in implementing the country's economic policy priorities. In a recent article published by CGTN, attention is drawn to how private enterprises have thrived and contributed significantly to national goals. These companies, showcasing adaptability and innovation, have been driving factors behind the demand for consumption and technological advancement, thereby facilitating the nation’s high-quality development.

Highlights of Private Sector Achievements

The article underscores various achievements from the previous year, particularly highlighting developments in innovative technologies. For instance, homegrown generative AI models like DeepSeek and Seedance have gained traction, while popular domestic IP products such as Black Myth Wukong, a highly anticipated video game, have caught global attention. Furthermore, advancements in humanoid robotics, championed by companies such as Unitree Robotics, and the rapid growth of commercial spaceflight, characterized by the launch of the reusable Zhuque-3 rocket, exhibit the vigorous momentum of China's private sector.

A year ago, during a symposium in Beijing, President Xi Jinping reiterated the significance of the private economy as a cornerstone for high-quality development and modernization in China. He noted the abundant potential for growth within the private sector, urging entrepreneurs to leverage their capabilities.

Emphasis on Domestic Demand

Alongside these advancements, President Xi's recent statements on China's economic landscape reinforce the ongoing focus on boosting domestic demand. This theme comes from his address at the Central Economic Conference last December, which highlighted the necessity of fostering innovation-driven development that accelerates the emergence of new growth drivers. The private sector's ability to respond to evolving consumer demands is crucial, as demonstrated by the innovative models introduced by food delivery service Meituan, which includes 64 drone delivery routes successfully handling over 600,000 orders in the past year.

In another noteworthy development, Wenzhou Runxin Machinery has created fully automated control valves for water treatment, responding directly to the increasing demand for high-quality equipment. Reports indicate that private enterprises accounted for a staggering 71.7% of the country's total sales revenue in the first half of 2025.

An astounding 92% of China's high-tech companies are now private, reflecting their strong market orientation and commitment to innovation. Companies like Longyu Robotics have made significant strides by developing core technologies for heavy-duty unmanned transport vehicles, overcoming foreign technological barriers.

Expanding Global Reach

In addition to enhancing domestic consumption and innovation, the private sector is expected to play a greater role in China's international economic engagement. Notably, private companies contributed 57.3% of China's total trade in the previous year, marking seven consecutive years of leading contributions to the nation’s foreign trade. The trend indicates an increasing trend of private enterprises venturing abroad and deepening international cooperation across green, digital, and maritime sectors.

President Xi has also emphasized the need for a regulatory and policy framework to support the recently enacted law for promoting the private economy. Enhanced policy backing is anticipated to improve the business environment further, empowering private enterprises to take on greater responsibilities in realizing national economic priorities.

In conclusion, the rising influence of the private sector in China embodies a dynamic force for the country's economic ambitions. As it continues to innovate and adapt, it remains clear that private enterprises will be at the forefront of advancing China’s economic policies and development goals for the future.