Fostering a Fertile Ground to Ignite Vitality: Observations on High-Quality Development of the Private Economy

April 9, 2025 – A favorable business environment serves as fertile soil for the growth of the private economy, while precise and effective policies provide strong support for private enterprises, injecting robust momentum into economic and social development.

On February 17, General Secretary Xi Jinping emphasized the unwavering commitment to the fundamental policies regarding the development of the private economy during a meeting with private business representatives. He stressed the importance of solidly implementing policies that promote the growth of the private economy.

Effective measures require not only deployment but also thorough execution. In recent years, a series of policies aimed at promoting high-quality development of the private economy have been introduced from the central government down to local levels. In cities like Chongqing, Jiangsu, and Shandong, it is evident that government departments are dedicated to enhancing policy measures and providing earnest service to enterprises. Private businesses are now able to focus on their core operations while accelerating innovation, with a collaborative effort between government and enterprises creating a more favorable business environment that strengthens corporate capabilities.

Financial Support Propels ‘Little Giants’ Forward

“We must eliminate all obstacles to equal access to production factors and fair market competition, continue to open competitive sectors of infrastructure to all types of business entities, and work hard to resolve the financing difficulties faced by private enterprises,” stated General Secretary Xi during the meeting in February 2025.

At Chongqing Tianshi Precision Technology Co., Ltd., automated robots efficiently transport chips along the production line, leading to the creation of camera modules through various processes like cleaning, surface mounting, and lens assembly.

Founded in August 2017, Tianshi focuses on the research and production of high-end cameras. In its early days, the company faced significant challenges in securing bank loans due to a lack of assets and low profits, often resorting to costly financing leases to maintain operations.

In 2020, Tianshi found itself in a tight financial spot, but just as the management was becoming overwhelmed, the financial office of the Yubei District stepped in, offering a “listing loan” product developed in collaboration with several banks to provide credit services without collateral.

“This was a lifesaver,” recalled Deputy General Manager Jiang Xinyu. The company quickly applied for a 30 million yuan listing loan, which was swiftly approved. “With this funding, we were able to increase our market share and competitiveness, leading to accolades such as being recognized as a national high-tech enterprise and a specialized ‘little giant’ enterprise.”

By the end of February, Tianshi had secured another 20 million yuan in loans through a special loan for technological transformation aimed at upgrading their automated equipment.

“The financing environment has improved significantly, with more channels available and lower interest rates,” stated Financial Director Bai Yuansheng, noting that the company’s average financing cost decreased from 5.3% in 2019 to the current 3%, greatly alleviating debt pressures.

Tianshi’s journey reflects the innovative exploration by local governments to address financing challenges faced by private enterprises: from “science and technology loans” in the startup phase to “listing loans” during growth, and special loans for technological upgrades. This tiered policy approach tailors support to companies at different stages of development, encouraging investment and innovation.

Collaborative Innovation Achieves Win-Win Outcomes

“We must arrange innovation chains around the industrial chain and enhance the primary role of enterprises in technological innovation,” General Secretary Xi underscored in September 2020 during a visit to Hunan.

Last month, the National Key Laboratory for Photovoltaic Science and Technology at Trina Solar Co., Ltd. in Jiangsu announced that it had developed a record-breaking 808W industrial standard photovoltaic module, becoming the first in the world to exceed this power threshold.

“It took us ten years of hard work! Since 2014, we’ve made significant investments in perovskite tandem technology. In addition to collaborating with several universities, we have also established an innovation center for next-generation photovoltaic technologies and equipment manufacturing with support from the government and industry partners,” said Gao Jifan, Chairman of Trina Solar.

To promote innovation and enhance the international competitiveness of the photovoltaic industry, the Jiangsu provincial government has implemented support policies to help leading enterprises like Trina Solar establish innovation coalitions that enhance the resilience and security of the supply chain.

In this context, in March 2024, with strong support from the Jiangsu provincial and Changzhou municipal governments, Trina Solar and its upstream and downstream partners built a manufacturing innovation center, focusing on collaborative innovation in tandem battery industrialization.

“No single enterprise can achieve comprehensive innovation on its own. The government creates a collaborative platform, guiding the industry to work together through joint research and shared patents, breaking the isolation and fostering a collaborative development path,” Gao acknowledged.

“For Trina Solar, the core value is research and innovation,” he emphasized, noting that government support and industry collaboration enhance the confidence and determination of enterprises in pursuing cutting-edge technological innovation.

Private enterprises contribute 70% of the nation’s technological innovations and comprise 80% of the national specialized ‘little giant’ enterprises and 90% of high-tech enterprises, becoming key players in technological innovation. The government’s efforts to cultivate an environment conducive to technological innovation and strengthen the role of enterprises as innovators will undoubtedly attract more entrepreneurs, researchers, and investors to collaboratively develop new productive forces.

Precise Policies Support Enterprises Through Challenges

“We must earnestly implement various relief policies, enhance policy accuracy, and ensure fair treatment for all enterprises,” General Secretary Xi highlighted in February 2025 during the meeting with private enterprises.

Recently, Qingdao Shengtong Nutrition Food Co., Ltd. successfully developed two rare disease special medical foods that were approved for market launch in just four months, significantly shortening the usual timeline by nearly a year. The approval process for production licenses has been reduced from ten working days to just three, improving efficiency by over 60%.

The special medical foods are specifically processed formula foods designed to meet the nutritional needs of individuals with limited dietary options, digestive absorption disorders, metabolic disorders, or specific disease states. The newly launched products cater to patients with hereditary amino acid metabolism disorders, a demographic that previously had no domestic options and had to rely on expensive and unstable cross-border purchases.

In September 2024, Shengtong submitted registration applications for these two products, receiving rapid approval in January 2025.

According to Gao Qingsong, Director of the Registration Division of the Shandong Market Supervision Administration, the registration process for such special medical foods previously took about a year and a half, but now it can be completed in just four months. The complexity of the registration process involves multiple stages, including research and development, production, and clinical reviews, with final on-site inspections.

In response to the urgent needs of rare disease patients, the National Market Supervision Administration proposed establishing a “priority review channel” for special medical foods. The Shandong Market Supervision Administration promptly activated a support mechanism for priority reviews and offered on-site assistance after registration approval, reducing the approval time from ten working days to three.

“The extreme compression of production license approvals, along with government support and expert guidance, has significantly streamlined our process,” said the company’s Deputy General Manager Yu Chengpeng.

This efficient approval speed reflects the precise release of policy dividends aimed at supporting the development of private enterprises and the comprehensive optimization of the approval mechanism.

A favorable business environment will attract enterprises, as they gravitate toward regions where conditions are conducive. Improving the business environment is a long-term system project that requires sustained efforts from the government, continuous innovation in regular communication mechanisms between government and enterprises, enhanced policy accuracy, and stringent enforcement. This will create a world-class business environment characterized by marketization, rule of law, and international standards, thereby promoting the high-quality development of the private economy.