China's private sector continues to expand. The State Administration for Market Regulation (SAMR) reported that as of the end of May, there were 185 million private-sector entities nationwide, accounting for 96.76% of all businesses, a year-on-year increase of 2.3%. Private enterprises and self-employed businesses have become the “dual engines” driving steady growth of the private economy, according to the SAMR. As of the end of May, the number of private enterprises had exceeded 58 million, up 5.2% year-on-year. These enterprises have continued to increase investment in technological innovation, making strong advances in strategic emerging industries such as new energy and high-end equipment manufacturing, and have become a key force supporting industrial upgrading and stable economic growth, said the SAMR. During the same period, the number of self-employed businesses reached 127 million, up 1.0% year-on-year. In sectors such as community retail and food services, self-employed businesses have adopted flexible and diverse business models to meet the varied needs of residents, the SAMR said.
The development of the private sector is an important barometer of the national economy, Li Changan, Professor at the Academy of China Open Economy Studies at the University of International Business and Economics, told the Global Times, noting that the rapid growth of private businesses and the increasing number of market entities reflect a continuously improving economic outlook and a better business environment. Moreover, the steady rise in market entities also indicates an improving environment for employment and entrepreneurship, particularly in the area of startups, said Li. “This growth includes both the increase in the number of private enterprises and the rise in registered self-employed businesses, which together contribute to a steadily expanding capacity for employment,” he noted.
China has ramped up efforts to promote development of the private sector, which contributes more than 60% of the country's GDP. In May, China's first fundamental law promoting the private sector came into effect, strengthening legal protections and injecting fresh momentum into a key driver of the economy, the Global Times reports.
