The private sector is an important part of China's economy and China would not have witnessed the astounding development it has without its contributions. Today, the private sector is responsible for more than 50 percent of the country's tax revenue, 60 percent of its GDP, 70 percent of its tech innovation and 80 percent of urban jobs.

In the past three years, the COVID-19 pandemic delivered a blow to both the Chinese economy and entrepreneurial confidence. Many private enterprises have had to manage a host of business complications. The Chinese Government, for its part, has adopted supporting policies offering critical assistance and relief options. For instance, commercial banks have been encouraged to increase credit granted to private enterprises in the manufacturing sector as well as extend bigger medium- and long-term loans to this industry to satisfy its financing demand. Companies encountering severe pandemic-induced difficulties became eligible for social insurance premium payment deferral. Tax cuts and rebates have also been introduced, reaching a record high in 2022.

Chinese President Xi Jinping, also General Secretary of the Communist Party of China (CPC) Central Committee, has clearly stated that China supports the private sector. "We will provide an enabling environment for private enterprises, protect their property rights and the rights and interests of entrepreneurs in accordance with the law, and facilitate the growth of the private sector," he said at the opening of the 20th CPC National Congress, a milestone event that set the tone for China's development over the next five years and beyond, in Beijing on October 16 last year.

And the Central Economic Work Conference two months later once again highlighted the equal treatment of state-owned and private enterprises. Considering the aforementioned, the assumption that the government wants to exclude private enterprises from China's economic paradigm proves incorrect.

Regulatory measures aim to address problems that have caused public resentment, such as certain businesses holding monopoly positions. For China, the most pressing issue remains the continuous improvement of its legal system to ensure both government and enterprises operate within the legal limits.

(Print Edition Title: Leveling the Field)