New Era, New Journey: Broad Prospects for the Development of the Private Sector

On February 17, 2025, General Secretary Xi Jinping attended a symposium on private enterprises in Beijing and delivered an important speech. Giving full recognition to the significant achievements in the private sector’s development and its important contributions to the country’s economic and social progress, Xi’s speech highlighted the need to understand the opportunities and challenges facing the private sector, and drew up a comprehensive roadmap for promoting the sector’s healthy and high-quality development at present and for some time to come.

Since the 18th CPC National Congress in 2012, General Secretary Xi has made a series of important statements on promoting the development of the private sector in the new era, and put forward a series of new ideas, viewpoints, and conclusions. He stated that the private sector is an important force for the CPC’s long-term governance and its mission to unite and lead the Chinese people to realize the Two Centenary Goals and the Chinese dream of national rejuvenation; the CPC Central Committee stays committed to unswervingly consolidating and developing the public sector, and unswervingly encouraging, supporting, and guiding the development of the non-public sector; the non-public sector’s status and functions in China’s economic and social development have not changed, nor have the principles and policies to unswervingly encourage, support, and guide the development of the non-public sector and provide a sound environment and more opportunities to the sector; the CPC Central Committee always believes that private enterprises and entrepreneurs “are part of our own family”; China’s private economy can only be strengthened, not weakened in the new journey to build a modern socialist country; and efforts should be made to facilitate the healthy development of the non-public sector and those working in the sector. 

To cope with difficulties and challenges facing the private sector in its development, General Secretary Xi set clear requirements for strengthening property rights protection, promoting entrepreneurial spirit, optimizing business environment, supporting reform and development of private enterprises, and fostering a cordial and clean relationship between government and business. He stressed that the basic principles and policies of the CPC and the state regarding the development of the private sector have been incorporated into the system of socialism with Chinese characteristics, and will be consistently upheld and implemented. These principles and policies cannot and will not be changed.  

Since the launch of reform and opening up in the late 1970s, under the strong leadership of the CPC Central Committee, China’s private economy has grown larger and stronger from small and weak. Particularly since the 18th CPC National Congress in 2012, with the deepening of all-around reform, China’s policy framework for supporting the private sector has become more refined. Multiple policy documents have been issued, greatly boosting its sustained, healthy, and high-quality development. As a result, the private economy has become an indispensable driving force for China’s development—serving as a major source of entrepreneurship and employment, a key player in technological innovation, and a major contributor to national tax revenue. It has played a significant role in advancing socialist market economy, transforming government functions, transferring rural surplus labor, and expanding international markets.

The current priority for promoting the private economy is to ensure all policies and measures that support its development are carried out to the letter. It is imperative to decisively remove all barriers hindering equal and lawful access to factors of production and fair participation in market competition; strengthen law enforcement supervision and effectively protect the lawful rights and interests of private businesses and entrepreneurs in accordance with the law; put in place various relief policies and treat all enterprises equally; and make more efforts to cultivate a cordial and clean relationship between government and business. 

Enterprises are major players in the market, and their internal driving force for development is of primary importance. Private businessmen should maintain their passion for entrepreneurship and serving the country, promote entrepreneurship, and contribute their part to building Chinese socialism and advancing Chinese modernization. They should pursue high-quality development and enhance the quality, efficiency and core competitiveness of enterprises. They should refine governance structures in line with the requirements of modern corporate systems with distinctive Chinese features while placing emphasis on cultivating company successors. They should uphold integrity and observe the law in business operations, and drive the healthy development of the private sector through concrete actions. Furthermore, they should fulfill their social responsibilities and give back to society.

Editor: Wang Cuifang