Number of Chinese private enterprises quadruples in past decade

The number of Chinese private enterprises has quadrupled in the last decade from nearly 10.86 million in December 2012 to 47 million this August, according to the State Administration for Market Regulation.

Private enterprises now account for 93.3 percent of China's total enterprises, up from 79.4 percent a decade ago. They play an indispensable role in stabilizing growth, promoting innovation, expanding employment and improving livelihoods, serving as an important engine driving economic and social development, said an official with the business registration bureau at the State Administration for Market Regulation.

A worker operates on the production line at a textile company in Nanmo Township of Hai'an City, east China's Jiangsu Province, Feb. 28, 2022. (Xinhua/Zhai Huiyong)

Private enterprises have demonstrated strong resilience in their development, thanks to a policy package issued by Chinese authorities on taxation, finance, employment and social security in recent years to help alleviate the burdens shouldered by market entities.

According to statistics from the State Administration for Market Regulation, between the beginning of 2020 and August 2022, nearly 11.85 million private enterprises were registered, which accounted for 1/3 of the number of total registrations in the past 10 years.

Statistics show that the number of foreign-funded enterprises has grown from 441,000 to 668,000 from the end of 2012 to the end of this August, up 51.5 percent.

As the Chinese economy is transitioning from a phase of rapid growth to one of high-quality development, foreign enterprises in China are increasingly diverting their investment to the high-tech sector, further optimizing the industrial structure, said the official.

Among the foreign companies established in the first eight months of this year in China, 15.4 percent and 9.6 percent were engaged in the "scientific research and technical service industry" and "information transmission, software and IT services", up 9.1 and 4.7 percentage points, respectively, from a decade ago.

The common development of Chinese enterprises having diverse forms of ownership has greatly enhanced China's overall national strength and global competitiveness, fully demonstrating the advantages and vitality of socialism with Chinese characteristics, and is driving the country to foster a new development paradigm and promote high-quality development.