Private enterprises in China got a shot in the arm recently with the introduction of the Private Sector Promotion Law. It is China's first fundamental law dedicated to promoting the private sector, and aims to optimize the development environment for the sector, ensure fair market competition, and promote the growth of both the private economy and private entrepreneurs.
China's private economy is becoming more resilient as the enterprises continue to enhance core competitiveness through innovation, green technology and digital tools. Science and Technology Daily interviewed experts and business leaders to zoom in on how the new law will impact the private economy.
Innovation leads the way
Data shows that in the first quarter of this year, nearly two million new private enterprises were established across the country, among which 836,000 were related to new technology, new industry, new business forms and new models.
Qingdao Alticera Advanced Materials Co., Ltd. produces high-performance silicon nitride, silicon carbide and other advanced ceramic powders, which are widely used in new energy vehicles, bullet trains, electronic thermal conductive materials, LED, medical ceramics, wind power and photovoltaic industry.
"Relying on independent innovation, we have attained the technology of large-scale and stable synthesis of high-purity silicon nitride powder," said Alticera Chairman Gao Yukun.
With the development of the NEV industry, the demand for high-end silicon nitride powder is increasing. "In the first quarter of this year, the sales volume of our products increased by nearly 50 percent year-on-year," said Gao.
More and more private enterprises are pioneering technology innovation. Huawei's HarmonyOS PC was officially released recently, marking an important breakthrough for domestic operating systems in the field of personal computers.
Meanwhile, DeepSeek is redefining the industry standards of AI with its disruptive technical architecture, and Unitree is expanding the technological boundaries of robots.
By the end of January, the number of private enterprises among national high-tech enterprises had increased to over 420,000, accounting for more than 92 percent of the total.
Going global
Guangzhou Shiyuan Electronic Technology Company Limited (CVTE), a provider of intelligent interactive solutions, often collaborates with Microsoft, particularly in the education and manufacturing sectors.
At present, more than 140 countries and regions have adopted CVTE's digital teaching solutions. In 2024, the company's overseas business increased by 17.5 percent year-on-year.
In the "unmanned factory" of China Feihe Ltd. in Kingston, Ontario, Canada, mechanical arms precisely grasp milk powder cans, leaving the entire production process to only a handful of technicians to monitor.
Jiang Shilong, the chief scientist of Feihe, said that the company has invested over five billion RMB in R&D in the past 10 years, making the quality of raw milk higher than the EU standard and successfully exporting the "Made in China" technology to the North American market.
Data shows that in the first quarter of 2025, the total number of enterprises in China importing and exporting products reached 529,000. This number included 455,000 private enterprises, which set a historical record accounting for over 86 percent of the total.
Law crucial for private economy development
This legislation is of great significance and has a profound influence on the high-quality development of the private economy.
"When we devote ourselves to the R&D of drugs with AI, the discovery of new substances, and the development of intelligent robots, what we most desire is a stable institutional guarantee," said Wen Shuhao, chairman of the Board of Directors of XtalPi Holdings Limited.
From ensuring fair market access and financing support, to enhancing services and protection of original innovation, the 78-article law cements efforts to encourage, support and guide the growth of the private sector.
The law proposed to support private entities in participating in major national strategies and projects, investing and starting businesses in strategic emerging industries, future industries and other fields. This has injected strong confidence into private enterprises to engage in the R&D of the core technologies, said Nan Cunhui, a member of the CPPCC National Committee and chairman of CHINT Group.
The legislation follows a series of pro-business measures issued by local governments this year. China's private economy is currently in a crucial period of transformation from scale-driven to innovation-led. The current flurry of supportive policies is fostering a favorable ecosystem for private technological innovation, said Ding Minglei, researcher at the Institute of Science and Technology Strategy of China.