China’s private economy reported steady growth in the first quarter of the year, which was increased by many supportive policies, according to guest speakers in the latest episode of China Economic Roundtable, an all-media talk show hosted by Xinhua News Agency.
According to official data, the value-added industry output of private companies increased by 7.3% per year in the first quarter, surpassing the growth rate of all industrial companies. Industrial output is used to measure the activity of large companies, each with a major annual business turnover of at least 20 million yuan (approximately USD 2.77 million).
In the past two months following the high-level symposium on private companies, both central and local authorities have introduced a set of policies aimed at promoting private sector growth, said Li Min, deputy director of the Department of Private Economic Development under the National Committee on Development and Reform.
The measures focus primarily on strengthening financial support, promoting private investment and promoting innovation, Liu said such efforts aim to create a more parental environment for the growth of private companies.
In the first three months of this year, private investment rose 0.4% year-on-year, showing a recovery from the decline seen in 2024.
In particular, private investment in the manufacturing sector increased 9.7% over the period, while private investment in infrastructure increased 9.3%, both exceeding the average growth rates for their respective sectors.
From the perspective of foreign trade, private companies’ imports and exports increased by 5.8% in the first quarter from the previous year, while China’s total imports and exports increased to 56.8%.
According to Zhu Min, an expert at the China Center for International Economic Exchange, private companies in China are ready to seize more opportunities across multiple sectors, including artificial intelligence, high-tech manufacturing, the services industry, scientific innovation and carbon neutrality.
To further strengthen private sector growth, China will implement new versions for the negative list of market access, strengthen small and medium-sized enterprise funding efforts, promote regular interactions with private companies, and fully implement various relief policies.
MNA/