The private sector is a pivotal part of China’s economy. More than 30 million private businesses contribute over 60 percent of the country’s GDP. They also account for more than half of government tax revenue and more than 80 percent of urban employment.
But their development is still facing chronic obstacles in market access, financing, property rights protection and other areas. On July 19, the Communist Party of China Central Committee and the State Council issued a new guideline on boosting the private economy.
The new 31-point action plan recognizes the private sector as an important foundation for the country’s high-quality development and its role in promoting modernization of industries. The document pledges to build the nation’s private economy “bigger, better and stronger,” akin to the support given to state-owned enterprises (SOEs).
