China private sector expands from 35M companies in 2020 to 47M companies in 2022

China’s top leaders have pledged unwavering support for the private sector to boost the COVID-19-hit economy, as the fast-growing private sector has played a big role in creating new jobs, promoting technological innovations and stabilizing economic growth.

The Central Economic Work Conference, which was held in mid-December to set economic priorities for 2023, called for the equal treatment of private enterprises and stressed law-based protection for the property rights of private enterprises and the interests of entrepreneurs.

The conference expected an overall improvement in the economy and a strong boost to the market conference next year, and it encouraged more private capital to participate in the construction of key national projects.

The private economy has continued to see strong growth despite challenges posed by COVID-19. From January 2020 to August 2022, the number of Chinese private enterprises expanded from 35.2 million to 47.0 million. In 2021, they accounted for 92.1 percent of all enterprises.

In 2021, the private sector contributed 48.6 percent of foreign trade, 56.5 percent of fixed-asset investment, 59.6 percent of tax revenue, over 60 percent of GDP, over 70 percent of technological innovations and more than 80 percent of urban employment.