Develop a High-Quality Private Sector

Develop a High-Quality Private Sector*

March 6, 2023

The year 2023 marks the first year for fully applying the guiding principles of the 20th CPC National Congress. It is essential that we ensure sound economic and social development throughout this year, and promote overall economic recovery, as these are the foundations on which we will build China into a modern socialist country in all respects.

I hope that the China National Democratic Construction Association (CNDCA) will fully participate in the deliberation and administration of state affairs, in democratic oversight, and in political consultation under the leadership of the CPC. I encourage you to leverage your extensive connections within the economic circles and utilize your unique strengths to generate new ideas and initiatives. Based on in-depth research and studies, you should actively contribute advice and suggestions on critical topics such as promoting high-quality development, fostering a new development dynamic, building a modern economic system, increasing total factor productivity, strengthening the resilience and security of industrial and supply chains, and advancing urban-rural integration and coordinated regional development. To improve its overall capabilities, the CNDCA should further refine its capacity for grasping the political landscape, taking part in the deliberation and administration of state affairs, exercising leadership, collaborating with other entities, and addressing internal challenges.

As a bridge that connects the Party and the government with entrepreneurs in the private sector, the All-China Federation of Industry and Commerce (ACFIC) assists the government in its administration of and service to the private sector. I hereby urge the ACFIC to prioritize efforts in the following three areas:

First, bolstering the confidence of private enterprises. The private sector has an important role to play in the CPC’s long-term governance and its endeavors to unite the people and lead them towards the Two Centenary Goals and the Chinese Dream of national rejuvenation. Since the 18th CPC National Congress in 2012, we have remained committed to consolidating and developing the public sector and to encouraging, supporting and guiding the development of the non-public sector. The status and role of the non-public sector in China’s economic and social development have not changed, nor have our guidelines and policies on creating a favorable environment and providing more opportunities to boost the growth of the sector. We have always regarded private enterprises and entrepreneurs as integral to our economy, and provided support during challenging times and guidance when needed.

We should optimize the business environment for private enterprises, remove institutional barriers that impede their fair participation in market competition, and better protect their property rights and the legitimate rights and interests of entrepreneurs. We should enshrine into institutional and legal frameworks the principle of equal treatment of state-owned and private enterprises, encourage and support the development and expansion of the private sector, and boost market expectations and confidence. We should also ensure that private enterprises continue to play a crucial role in stabilizing employment and increasing incomes. This will involve adopting more effective measures to support the development of micro, small and medium-sized enterprises and individual businesses, while also supporting platform enterprises in creating more jobs, expanding consumption, and engaging in international competition.

We should take solid measures to cultivate a cordial and clean relationship between government and business, and address the challenges faced by private enterprises and entrepreneurs, so that they can focus on business growth without undue concerns. The ACFIC should strengthen theoretical and political guidance, assisting private enterprises and entrepreneurs in understanding the CPC Central Committee’s commitments to developing both the public and non-public sectors and facilitating the healthy development of the non-public sector and those working in it. This will help alleviate concerns and inspire further development.

Second, promoting the high-quality development of the private sector. The private sector is a vital force powering the new development dynamic and driving high-quality economic development. The latter necessitates higher requirements for the sector. Therefore, we should encourage private enterprises to apply the new development philosophy, help them fully understand the deficiencies and challenges faced by their sector, and support them in transforming their growth models, adjusting industrial structures, and transitioning to new drivers of growth. They should prioritize their core businesses, focus on the real economy, and commit to a path of high-quality development.

We should encourage and guide qualified private enterprises to strengthen their capacity for independent innovation, contribute more to the nation’s strength and self-reliance in science and technology, and play a greater role in accelerating the application of scientific and technological advances. We should stimulate the vitality of private capital investment so that more private capital will be drawn into major national projects and key industrial and supply chains, and contribute a greater share to the new development dynamic and high-quality development. In addition, we should regulate and guide the healthy development of all types of capital in accordance with the law, effectively forestall and defuse systemic financial risks, and create an environment where enterprises under all forms of ownership can compete and grow on a level playing field.

Third, guiding private enterprises to fulfill their social responsibilities. Chinese modernization is centered on the goal of common prosperity for all. Both state-owned and private enterprises are crucial contributors to this goal, and both must play their part in achieving it. Entrepreneurs in the private sector should foster a profound commitment to the country, conscientiously apply the people-centered philosophy of development, and increase their sense of mission and responsibility in helping others prosper and promoting common prosperity. Private enterprises are encouraged to maintain harmonious labor relations and share benefits with all employees in a fair way.

Private enterprises and entrepreneurs must conduct their business activities in strict compliance with the law, exemplify entrepreneurship, and set a good example of patriotism, dedication, enterprise, innovation, law observance, and social responsibility. They are encouraged to carry forward traditional Chinese ethics, actively engage in public-interest programs and charitable initiatives, and utilize their wealth to fulfill their social responsibilities for the greater good.

* Part of the speech at a joint panel discussion of CPPCC National Committee members from the CNDCA and the ACFIC during the First Session of the 14th CPPCC National Committee.

(Not to be republished for any commercial or other purposes.)