SCIO briefing on China's economic performance in Q1 2025

Shou Xiaoli:

Due to time constraints, we'll take one last question.

Economic Daily:

In February this year, the CPC Central Committee convened a symposium on private enterprises, making comprehensive arrangements for the healthy and high-quality development of the private sector. May I ask how the private sector performed in the first quarter? What's your perspective on future development prospects? Thank you.

Sheng Laiyun:

Thanks for your question. The private sector is a vital force in advancing Chinese modernization, a key foundation for high-quality development, and an important driver in achieving the Second Centenary Goal of building China into a great modern socialist country in all respects. It plays a crucial role in stabilizing growth, promoting innovation, increasing employment, and improving people's lives. The CPC Central Committee and the State Council attach great importance to private sector development and have introduced a series of policies and measures to promote its growth. General Secretary Xi Jinping delivered an important speech at this year's symposium on private enterprises. He emphasized the importance of working unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector, and urged efforts to promote the healthy and high-quality development of the private sector. The general secretary's important speech greatly boosted confidence in the private sector's development. Local authorities and departments at all levels have earnestly implemented the guiding principles of the symposium, putting into practice the CPC Central Committee's requirements for private sector development. The implementation of these policies has yielded significant results. The first-quarter statistics also reflect this. Let me share a few indicators and data.

From a business operations perspective, private enterprises continue to show improvement in their production and operational activities. In the first quarter, the value added by private industrial enterprises above designated size increased 7.3% year on year. This growth rate not only represents an improvement over the full-year figure from last year, but also outpaced the overall growth rate for all industrial enterprises above designated size. Of course, this doesn't represent comprehensive data for all private enterprises, and we are speeding up reforming and improving relevant statistical systems.

Regarding the vitality and momentum of private enterprises, from an investment perspective, various policy measures have created a fair business environment for private investment. Private investment has turned from a decline last year to growth, increasing 0.4% year on year in the first quarter. Specifically, private investment in the manufacturing sector grew 9.7% year on year in the first quarter. Meanwhile, private infrastructure investment increased 9.3%. Both growth rates exceeded the average in their respective sectors. From an import-export perspective, private enterprises saw their trade volume grow by 5.8% year on year in the first quarter, outpacing the overall import-export growth rate. Private enterprises now account for 56.8% of China's total import-export volume.

From the perspective of innovation capabilities, private enterprises remain the most dynamic group, especially in terms of innovation. Since the beginning of this year, private enterprises have continuously produced technological innovations, from generative AI to AI robots, and from civil aviation to quantum information and other fields. The private sector has demonstrated strong innovation vitality, potential and market competitiveness.

Therefore, we must attach great importance to and support the development of the private sector. Following the requirements of the CPC Central Committee, we must work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector. We will take solid steps to fully implement various policies promoting private sector development. We'll continuously optimize the business environment and strengthen financial support and legal guarantees to promote healthy, high-quality private sector development.

Thank you.

Shou Xiaoli:

This concludes today's press conference. Goodbye, everyone.

Translated and edited by Zhang Rui, Yan Bin, Wang Xingguang, Xu Kailin, Wang Qian, Ma Yujia, Huang Shan, Li Huiru, Yuan Fang, Zhang Junmian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.