Private economy eyes robust growth amid policy support

China's latest push to bolster the growth of its private economy is expected to shore up business confidence, stabilize market expectations and revitalize the growth of the world's second-largest economy amid challenges and external uncertainties, said experts and company executives.

They noted that the country has sent a clear signal that it is dedicated to boosting the high-quality development of the private economy through rolling out targeted measures to deal with the difficulties and issues faced by private enterprises.

Their comments came as President Xi Jinping attended a symposium on Monday on private enterprises in Beijing and delivered an important speech, after listening to representatives of private entrepreneurs.

Zhou Maohua, an analyst at China Everbright Bank, said: "The private sector is a vital force in advancing Chinese modernization, and it plays an increasingly significant role in stabilizing economic growth, expanding employment and bolstering technological innovation."

Zhou said that a series of supportive measures, which have been introduced to tackle prominent problems facing private enterprises and to improve the business environment, are crucial for boosting confidence and stabilizing the expectations of private enterprises and entrepreneurs, and this will further consolidate the economic recovery trend.

He noted that the country's ongoing efforts to promote the healthy development of the private sector will be conducive to creating a more stable, transparent and predictable business environment, motivating private enterprises to beef up investment in research and development, and achieving technological breakthroughs, as well as further stimulating the vitality of the private economy, he added.

Liu Dian, a researcher at Fudan University's China Institute, said President Xi's meeting with private entrepreneurs sent a strong signal to the outside world that China attaches great significance to the private economy and is committed to bolstering its high-quality development.

He said it is advisable for the government to guide financial institutions to innovate financial products and services, enhance support for boosting technological innovations by private enterprises, encourage private companies' collaboration with universities and research institutions, and accelerate the legislative process for a law to promote development of the private economy.

Looking ahead, he said that the country will likely introduce more supportive measures, including further optimizing the business environment, promoting innovative development and fostering fair competition. Specifically, Liu said he expects to see further moves to improve the fiscal, tax and financial policy systems and address the practical difficulties and issues facing private companies.

Key driving force

Private companies, a key driving force behind China's economic ascent over the past decades, contribute more than 60 percent of gross domestic product, 70 percent of technological innovation and 80 percent of urban employment, official data show.

Entrepreneurs hailed the raft of policy measures on boosting support for the private sector, and expressed strong confidence in its future growth.

Qi Xiangdong, chairman of cybersecurity company Qi-Anxin Technology Group, who attended the symposium, said in an earlier interview with China Daily that private enterprises have played a significant role in promoting scientific and technological innovation, and fostering the development of new quality productive forces.

Qi said they should strive to explore new business models and management methods and bolster the application of technologies, and he emphasized that his company will step up original and pioneering sci-tech innovation, and reinforce fundamental research in artificial intelligence to promote industrial upgrading.

Lei Jun, founder, chairman and CEO of China's homegrown tech giant Xiaomi Corp, told China Daily in an earlier interview that the country's moves, such as supporting technological innovation in the private sector and accelerating digital transformation, have boosted the company's confidence and expectations, and it will continue to develop its main business and contribute to the development of the real economy.

Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, said that the private economy is playing a pivotal role in supporting China's overall economic development.

Looking forward, Wang said a multipronged approach is needed to address issues faced by private companies, such as expanding financing channels for private enterprises and reducing financing costs, as well as intensifying efforts to further cut taxes and fees in order to lower operational costs.

Contact the writers at fanfeifei@chinadaily.com.cn