China's private economy expands steadily in Q1, boosted by policy support

China's private economy reported steady growth in the first quarter of the year, boosted by a slew of supportive policies, according to the guest speakers of the latest episode of the China Economic Roundtable, an all-media talk show hosted by Xinhua News Agency.

Official data shows that the value-added industrial output of private enterprises increased by 7.3 percent year on year in the first quarter, outpacing the growth rate of all industrial enterprises. The industrial output is used to measure the activity of large enterprises, each with an annual main business turnover of at least 20 million yuan (about 2.77 million U.S. dollars).

In the past two months following a high-level symposium on private enterprises, both central and local authorities have introduced a series of policies aimed at fostering the growth of the private sector, said Liu Min, deputy head of the private economy development bureau under the National Development and Reform Commission.

These measures mainly focus on enhancing financial support, boosting private investment, and fostering innovation, Liu said, noting that such efforts are aimed at creating a more conducive environment for the growth of private enterprises.

In the first three months of this year, private investment grew by 0.4 percent year on year, marking a recovery from the decline seen in 2024.

Notably, private investment in the manufacturing sector grew by 9.7 percent year on year during the period, while private investment in infrastructure increased by 9.3 percent, both exceeding the average growth rates in their respective fields.

In terms of foreign trade, the import and export volume of private enterprises rose by 5.8 percent year on year in the first quarter, and their share in China's total import and export volume increased to 56.8 percent.

According to Zhu Min, an expert at the China Center for International Economic Exchanges, China's private enterprises are poised to seize more opportunities across multiple sectors, including artificial intelligence, high-tech manufacturing, the service industry, scientific innovation and carbon neutrality.

To further bolster the growth of the private sector, China will implement a new version for the negative list on market access, strengthen financing efforts for small and micro firms, foster regular exchanges with private enterprises, and fully implement various relief policies, Liu said. ■