China Enhances Support for Private Enterprises in Technology and Research Initiatives

Beijing, The Gulf Observer: China is set to bolster support for capable private enterprises to lead national initiatives in major technologies and gain improved access to significant national scientific research infrastructure, according to statements from the National Development and Reform Commission (NDRC). This announcement was made during a recent meeting in Chengdu, Sichuan Province, focused on promoting the high-quality development of the private sector.

Zheng Bei, deputy head of the NDRC, emphasized the importance of private enterprises in stabilizing economic growth, fostering innovation, and enhancing employment opportunities. He called for concrete actions to encourage the integration of technological and industrial innovation, thus advancing the high-quality development of the private sector.

The government’s strategy includes encouraging private companies to actively participate in major national strategies and enhance security capabilities in crucial areas. Additionally, the plan involves supporting large-scale equipment upgrades and improving market services to facilitate the application of domestically developed products.

China is also committed to enhancing policies that support long-term capital investment in early-stage, small-scale, and high-tech projects, aiming to unlock the innovation potential of private enterprises.

The meeting attracted representatives from diverse sectors, including new materials, aerospace, agriculture, robotics, communications, biopharmaceuticals, energy, environmental protection, finance, manufacturing, and the Internet of Things. Notably, ZOOM SOLAR Green Energy Technology, a photovoltaic firm from Xi’an, expressed optimism about leveraging these new policies to secure necessary investments for driving future growth and innovation.

The private sector plays a crucial role in China’s economy, contributing over 50 percent of tax revenue, more than 60 percent of GDP, over 70 percent of technological innovation, and creating over 80 percent of urban jobs. Earlier this month, the Ministry of Justice and the NDRC released a draft private sector promotion law, aiming to ensure equal treatment and protection for private businesses, marking a significant step in supporting the development of the private economy in China. If passed, this would be the country’s first foundational law specifically dedicated to the private sector’s growth.