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The Important Role of Private Sector

By Qiu Ping Source: Updated: 2023-05-24

It is a consistent policy of the CPC Central Committee that supporting the development of private sector. The number of private enterprises in China went up from nearly 11 million in 2012 to over 47 million by 2022, a more than four-fold increase in a decade. Among the national-level specialized, refined, and innovative "little giants" enterprises, the private ones account for over 80%. China already has over 3,000 listed private enterprises, and the number of Chinese private companies in the Fortune 500 list leapt from five in 2012 to 28 in 2022.

During more than 40 years of reform and opening up, the Chinese private sector has witnessed growth in size and strength, and it now contributes for over 50% of tax revenue, over 60% of GDP, over 70% of technological innovation, over 80% of urban employment. And over 90% of the enterprises are from the sector. Since the 18th CPC National Congress held in 2012, the Chinese private sector’s scale and capacity reached new heights, while they have also accelerated their transition to high-quality development. Chinese economic development has produced the remarkable Chinese miracle. The country has won the victory in the battle against poverty, built up a moderately prosperous society in all respect as scheduled, and accomplished the First Centenary Goal. Facts have proved that private sector and people working in the sector have contributed a lot to these achievements.

High-quality development is a priority in building a modern socialist country. To attain a high level of self-reliance in science and technology and a high standard of opening up, improve the quality and quantity of the economy, and quickly establish a new development dynamic, China should continue to develop the private sector and cultivate outstanding private enterprises with international competitiveness.  

In China’s basic socialist economic system, the public ownership plays the dominant role with ownership in multiple forms developing together. While distribution according to work being the mainstay, distribution in other forms exist alongside. The basic socialist economic system, including the socialist market economy, is a great innovation of the CPC and the Chinese people. They are also important pillars of the system of socialism with Chinese characteristics. Moreover, they embody significant advantages of China’s national institutions and governance system. As an inherent part of China’s economic system, the private sector will always be a vital economic foundation which China must uphold and develop in its socialism with Chinese characteristics, and it will always be an important force which the CPC must unite and rely upon during its long-term governance.