CGTN: Private Sector — Key Actor Accelerating China's Economic Priorities in 2026 and Beyond
Beijing (ANTARA/PRNewswire) — CGTN has published an article examining the critical role of China’s private sector in supporting the country’s current national economic development priorities. The article highlights significant achievements by private enterprises over the past year, analysing their strengths in innovation, market responsiveness, and entrepreneurial spirit — factors that have driven consumption, technological innovation, and economic openness, thereby underpinning China’s high-quality development.
From the rapid development of domestic generative AI models such as DeepSeek and Seedance, to global market enthusiasm for Chinese IP products like the video game “Black Myth: Wukong” and Labubu dolls; from breakthroughs in humanoid robot technology led by companies such as Unitree Robotics, to the rapid growth of the commercial aerospace sector marked by the launch of the Zhuque-3 reusable rocket carrier — all these developments demonstrate the strong momentum of China’s private sector over the past year.
Private Enterprises: A Vital Pillar of High-Quality Development
A year ago, on 17 February 2025, at a symposium on private enterprises in Beijing, President Xi Jinping affirmed the critical role of the private sector in driving high-quality development and China’s modernisation. He stated that the private sector has broad prospects and enormous potential, adding that now is the right time for private companies and entrepreneurs to demonstrate their capabilities.
In a recent article published by President Xi on the main agenda for China’s current economic development, domestic demand remains the focus in building a strong internal market. The article, referencing President Xi’s speech at the Central Economic Work Conference last December, also emphasised the importance of strengthening innovation-driven development to accelerate the formation of new growth drivers, as well as continuing the open-door policy to promote mutually beneficial cooperation across various fields.
With their large scale and important position in the national economy, combined with advantages in innovation, market sensitivity, institutional flexibility, and entrepreneurial spirit, private enterprises are expected to play a leading role in realising these various priorities.
Driving Consumption, Innovation, and Openness
Private enterprises are more sensitive to changing consumption trends and thus better able to deliver products and services that meet emerging needs, according to Bai Chong-en, Dean of the School of Economics and Management at Tsinghua University. He added that the private sector also has advantages in driving innovation, particularly in emerging or breakthrough fields.
In the area of consumption, for example, food delivery company Meituan pioneered the instant urban delivery model by launching 64 drone delivery routes and completing more than 600,000 orders last year. Meanwhile, Wenzhou Runxin Machinery developed fully automated water treatment control valves to meet demand for high-quality equipment. In the first half of 2025, private enterprises contributed 71.7 per cent of national revenue from sales activities.
Currently, more than 92 per cent of high-tech enterprises in China are private companies. With keen technological insight and strong market orientation, private enterprises are able to identify needs rapidly and drive the commercialisation of innovation. For instance, Longyu Robotics successfully developed core technology for heavy-duty autonomous vehicles, reducing dependence on foreign technology. DJI, supported by strong market understanding and sustained investment in research and development, has become a global leader in the drone industry.
Beyond driving consumption and innovation, the private sector also plays a vital role in China’s economic openness. Amid global trade challenges, private enterprises accounted for 57.3 per cent of total trade last year, serving as the largest contributor to China’s foreign trade for seven consecutive years. An increasing number of private companies are expanding into overseas markets and deepening international cooperation in green economy, digital economy, and maritime sectors.
In his latest article, President Xi also stressed the importance of refining the regulatory framework and supporting policies for the Private Economy Promotion Law, which was enacted last May. Stronger policy support is further optimising the business environment and encouraging private enterprises to play a greater role in realising national economic priorities going forward.