China to Remove Market Access Barriers for the Private Sector

China is taking steps to revise its negative list for market entry in order to eliminate barriers affecting private enterprises. This effort is part of a wider initiative aimed at supporting the healthy development of the private economy, according to statements made by the country's leading economic regulator.

This announcement followed a recent symposium in Beijing, where President Xi Jinping emphasized the government's commitment to fostering private sector growth through tangible actions. Analysts interpreted this as a strong message of support from the Chinese government.

Experts note that policymakers are planning to implement targeted measures that will help address the challenges encountered by private companies and foster a more conducive business environment. Such measures are expected to significantly enhance the confidence and expectations among entrepreneurs and private enterprises.

"China aims to expedite the revision and updating of the negative list for market access. Areas not mentioned in this list will be considered entirely open for private enterprises," stated Zheng Bei, the deputy head of the National Development and Reform Commission (NDRC), during a news report by China Central Television.

The government plans to continue opening key sectors—including competitive infrastructure and major national scientific research facilities—to private investments. Additionally, it will promote active participation from private enterprises in executing national strategies and enhancing the country’s security capabilities in critical areas, along with major equipment upgrades and retrofitting programs for consumer goods.

According to Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation, the government's actions are sending a clear message to optimize the business climate for private enterprises. This includes addressing market access issues and financing challenges while enhancing corporate confidence through legal frameworks, all of which are vital for high-quality economic development.

Hong highlighted the significant role that the private economy plays in energizing the overall economy and supporting growth and stability. Data from the NDRC indicates that the private sector has seen substantial improvements in its scale, innovation potential, and international competitiveness in recent years.

Currently, private enterprises represent over 92% of all businesses in China and constitute more than 92% of the country’s high-tech companies.

The government is committed to abolishing remaining barriers to market entry and access to production resources, thereby creating a unified, open, competitive, and orderly market framework, the NDRC stated.

Zheng from the NDRC further emphasized the importance of legal protections for private enterprises and entrepreneurs, indicating that efforts are underway to advance legislation promoting the private economy. A draft law aimed at supporting the private sector was presented for review to the Standing Committee of the 14th National People’s Congress last December.

Bai Wenxi, vice-chairman of the China Enterprise Capital Union, remarked that the government has charted a clear path for the private economy's future—aiming for high-quality growth and encouraging private enterprises to play a more significant role in implementing national strategies and development priorities.

Bai noted, "These actions underscore the importance and support the country has for the private economy, confirming that the private sector’s role in China's economy is indispensable." He also mentioned that the government’s initiatives to amend the negative list on market access and tackle financing issues will offer more growth opportunities for private businesses and help lighten their operational burdens.

Looking to the future, Bai suggested that it would be beneficial for the government to continue eliminating implicit barriers and resolving issues faced by the private sector, particularly regarding limited access to affordable financing options. Potential solutions may include further encouragement for financial institutions to create products designed for private enterprises and widen their financing avenues.

Pan Helin, an expert from the Ministry of Industry and Information Technology, echoed Bai's sentiments, stating that he believes further supportive measures for the private economy are forthcoming. He emphasized a focus on enhancing the business environment, which could involve streamlining administrative approval procedures, improving operational efficiency, and lowering business costs to boost overall satisfaction and benefits for private enterprises.

China, Private, Economy