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

In a recent article published by CGTN, the critical significance of China's private sector in steering the nation's economic priorities was highlighted. The ongoing advancements in this sector over the past year underscore its transformative impact on various industries and the economy at large. From the rise of domestic generative AI models like DeepSeek and Seedance to innovations in the gaming industry with titles like "Black Myth: Wukong," China’s private companies have exhibited remarkable dynamism. Technologies such as humanoid robotics by firms like Unitree Robotics and the emergence of reusable launch vehicles in the aerospace sector signal unprecedented progress.

The Rise of the Private Economy

On February 17, 2025, President Xi Jinping, during a symposium dedicated to private enterprises in Beijing, acknowledged the private economy's pivotal role in fostering high-quality development and modernization in China. His remarks underscored the vast potential and promising future for private companies and entrepreneurs, emphasizing that this current era is an ideal time for them to demonstrate their capabilities.

The insights presented in Xi’s recent article emphasized that domestic demand will remain central to building a robust internal market in China. Embedding innovation within development strategies, along with an enduring commitment to openness, is essential for cultivating new growth factors and achieving mutually beneficial collaborations across diverse fields.

Given the extensive scale of private enterprises and their integral position within the economy, they are expected to navigate and promote these priority areas effectively.

Enhancing Consumption, Innovation, and Global Integration

Private companies in China are known for their nimbleness in responding to shifts in consumer demand. Bai Chong-en, dean of the School of Economics and Management at Tsinghua University, pointed out that this adaptability enables them to meet the emerging trends in the market effectively. Furthermore, these businesses hold significant advantages in driving innovation, particularly in relatively unexplored or pioneering sectors.

For instance, Meituan, a leading food delivery giant, has pioneered new instant delivery models, launching 64 drone delivery routes last year, fulfilling over 600,000 orders. Similarly, Wenzhou Runxin Machinery has developed fully automated water treatment control valves to meet the rising demand for high-quality equipment. Notably, private enterprises accounted for a staggering 71.7% of national sales revenue in the first half of 2025.

Currently, over 92% of China's high-tech companies are private entities. Their robust technological insights and strong market orientation allow them to rapidly identify demands and speed up the commercialization of innovations. Noteworthy is the case of Longyu Robotics, which has developed fundamental technologies for heavy autonomous vehicles, successfully overcoming foreign technological restrictions. DJI, backed by significant market insight and sustained research investments, has emerged as a world leader in the drone industry.

The private sector is also increasingly integral to China's pursuit of international engagement. Despite unfavorable global trade developments, private businesses contributed 57.3% to the nation's total trade last year, maintaining their status as the largest contributors to foreign trade in China for seven consecutive years. Expansion abroad is becoming more common among private firms, enhancing international cooperation in areas of green, digital, and maritime economics.

In a recent publication, President Xi Jinping also stressed the importance of strengthening the regulatory and policy framework that supports the Private Economy Promotion Law enacted in May last year. With stronger political backing, an optimized business environment can further enable private enterprises to play an even more vital role in advancing the country's economic priorities in the future.

This analysis of China's private sector illustrates a robust framework for analyzing current trends and strategies that highlight the significance of private enterprises in the broader context of national economic policy. As they evolve, private companies will undoubtedly continue being key players, dedicated to innovation and economic growth in China.

For more insights, visit CGTN.