The private sector has played an important role in driving China's economic development.
Official data show that it generates over half of the nation's tax revenues, contributes 60 percent of annual GDP, drives 70 percent of technological innovations, provides 80 percent of urban employment, and accounts for 90 percent of all enterprises.
According to data from the State Administration for Market Regulation, as of the end of September, China had more than 5 million private companies, a 6-percent increase from the previous year, along with 125 million self-employed businesses, which grew by 3 percent. Combined, these figures represent a fourfold increase over the past decade.
The private sector has also outperformed the broader economy in investment and trade. In the first 10 months of the year, private investment (excluding real estate development) grew by 6.3 percent, while imports and exports from the private sector surged by over 9 percent compared to the previous year.
Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector.
Lawmakers agreed that the law will be of great significance for further optimizing the environment for private sector development, accelerating the formation of a new development paradigm and driving high-quality growth.
Private sector important in driving Chinese economic development
