By Hasan Muhammad

 

 

Despite mounting challenges from domestic and external pressures, the Chinese economy has demonstrated resilience, bolstered by a series of targeted and incremental policy measures implemented in the latter half of the year. These policies have yielded tangible results, reflected in the improvement of several key economic indicators. 

 

As an integral player in global industrial and supply chains, China's macroeconomic strategies influence the pace of global economic recovery and trade dynamics. Moreover, its status as a primary trading partner for more than 120 countries and regions underscores the interconnectedness of its policy choices with the economic fortunes of nations worldwide.

 

The recently concluded Central Economic Work Conference in Beijing, held on December 11–12, attracted considerable global attention, reflecting the high expectations the international community continues to place on China’s ability to share its growth dividends and opportunities. This optimism stems from China's proven track record of macroeconomic management and its exceptional capacity to execute complex strategies.

 

At the heart of this confidence lies China’s ability to maintain a dynamic equilibrium-skillfully balancing government intervention with market forces, adjusting supply and demand dynamics, harmonizing self-reliance with opening-up, and transitioning from old growth drivers to new sources of economic vitality. Furthermore, China has consistently emphasized a nuanced approach to growth, navigating the dual imperatives of quantity and quality, while prioritizing both development and security. These well-calibrated measures underscore its economic resilience and its potential to contribute to global economic stability.

 

Looking ahead, China is set to adopt a more proactive fiscal stance, paired with a moderately accommodative monetary policy. Policymakers seem prepared to accept higher deficits while expanding and refining their policy toolkit. This includes bolstering countercyclical measures and leveraging a comprehensive bailout policy package. 

 

Domestically, significant reforms are underway to streamline administration, delegate powers, and improve regulation. These reforms include simplifying approval processes, reducing the costs of starting a business, enhancing market oversight, and making business registration more accessible.

 

Such measures aim to invigorate market vitality and enhance the ease of doing business. According to a report from the State Administration for Market Regulation, by the end of September 2024, China was home to over 180 million private economic entities, accounting for 96.37% of all business entities - a year-on-year growth of 3.93% and a remarkable fourfold increase in just over a decade. Among these, 55.5 million were private enterprises, marking a 6.02% annual growth, while individual businesses numbered 125.3 million, reflecting a 3.03% increase compared to the previous year.

 

These statistics illustrate the ongoing improvement in China’s business environment and the dynamic unleashing of its market potential. The country's emphasis on fostering a robust private sector not only strengthens its economic resilience but also reinforces its role as a key driver of global economic growth and innovation. By pursuing modernization at home, China is simultaneously positioning itself as a vital partner in addressing shared global challenges.

 

The private economy serves as a cornerstone of China's market system, playing an irreplaceable role in driving economic growth, creating jobs, and refining industrial structures. Recognizing its importance, China has consistently prioritized the development of the private sector, ensuring equal legal protection for all types of economic entities. This commitment has facilitated easier registration processes for private businesses, increased their market share, and unleashed the full dynamism of the economy.

 

In terms of industrial structure, the private sector plays a vital role across various industries, particularly in services and manufacturing. For instance, private enterprises dominate China’s wholesale and retail sector, accounting for an impressive 97.97% of all operations. As a critical link between production and consumption, this overwhelming presence of private businesses reflects the resilience and vitality of China's commodity market.

 

China's efforts to enhance the private economy not only highlight its dedication to fostering a diverse and robust economic landscape but also demonstrate its focus on creating opportunities for innovation and competition.