Number of private firms in China quadruples in 10 years

The number of private enterprises operating in China has more than quadrupled during the period from 2012 to 2021, according to official data.

A train leaves Taizhou Railway Station on the Hangzhou-Shaoxing-Taizhou railway line, China's first high-speed railway controlled by private capital, on Jan. 8, 2022. (Photo/Xinhua)

The country’s private firms increased from 10.857 million in 2012 to 44.575 million in 2021, data released by the State Administration for Market Regulation showed.

Private enterprises took up the lion’s share of the country’s companies, accounting for 92.1 percent last year, up from 79.4 percent in 2012.

Since 2012, China has unswervingly encouraged, supported and guided the development of the non-public sector, invigorating the development of private enterprises. Last year alone saw the establishment of 8.525 million new private enterprises, a year-on-year increase of 11.7 percent.

The country’s private enterprises have demonstrated a strong resilience thanks to a series of tax, financial, social security and employment policies and a fair competitive market environment.

In recent years, private enterprises in China have been responsible for over 50 percent of tax contributions, over 60 percent of investment and more than 70 percent of inventions and innovations, said Ma Bin, executive vice president of the China Association of Small and Medium Enterprises.

More and more private enterprises have successfully entered key industries and areas in recent years. In January, the Hangzhou-Shaoxing-Taizhou high-speed railway, the country’s first high-speed railway controlled by private capital, was put into operation in east China’s Zhejiang Province.

Chinese privately-operated enterprises play an important role in stabilizing growth, driving innovation, boosting employment and improving living standards, and are becoming a major force for driving economic and social development.