Industrial robots are operating on an intelligent production line in a smart manufacturing enterprise in Yangzhou, East China's Jiangsu Province. Photo: VCG

China's private sector continues to expand, with data from the State Administration for Market Regulation (SAMR) on Friday showing that as of the end of May, there were 185 million private-sector entities nationwide, accounting for 96.76 percent of all business entities, a year-on-year increase of 2.3 percent.

Under a pattern of coordinated efforts from diverse market players, private enterprises and self-employed businesses have become the "dual engines" driving steady growth of the private economy, according to the SAMR.

Specifically, as of the end of May, the number of private enterprises had exceeded 58 million, up 5.2 percent year-on-year. These enterprises have continued to increase investment in technological innovation, making strong advances in strategic emerging industries such as new energy and high-end equipment manufacturing, and have become a key force supporting industrial upgrading and stable economic growth, said the SAMR.

During the same period, the number of self-employed businesses reached 127 million, up 1.0 percent year-on-year. In sectors such as community retail and food services, self-employed businesses have adopted flexible and diverse business models to meet the varied needs of residents, theSAMR said.

The development of the private sector is an important barometer of the national economy, Li Changan, a professor at the Academy of China Open Economy Studies at the University of International Business and Economics, told the Global Times on Friday, noting that the rapid growth of private businesses and the increasing number of market entities reflect a continuously improving economic outlook and a better business environment.

Moreover, the steady rise in market entities also indicates an improving environment for employment and entrepreneurship, particularly in the area of startups, said Li. "This growth includes both the increase in the number of private enterprises and the rise in registered self-employed businesses, which together contribute to a steadily expanding capacity for employment," the expert noted.

China has ramped up efforts to promote development of the private sector, which contributes more than 60 percent of the country's GDP, according to Xinhua News Agency.

In May, China's first fundamental law promoting the private sector came into effect, strengthening legal protections and injecting fresh momentum into a key driver of the world's second-largest economy.

The law aims to optimize the development environment for the sector, ensure fair market competition, and promote the growth of both the private economy and entrepreneurs, Xinhua reported.

Global Times