摘要：Lead: China's growing private economy is set to transform Asia and the world, driving innovation, deepening trade ties, and advanc

By Yasiru Ranaraja

Lead: China's growing private economy is set to transform Asia and the world, driving innovation, deepening trade ties, and advancing green technology.

As China embarks on its 15th Five-Year Plan next year, the old problems that once dominated its economic agenda have faded, making way for new opportunities. The next decade will be critical to China's goal of reaching mid-level developed-country status, with per capita GDP expected to exceed $30,000.

Achieving this success depends on a growing services economy, new quality productive forces and deeper market reforms. At the heart of this transformation is the private economy. Chinese President Xi Jinping has emphasized the importance of private enterprises, recognizing the private sector as both a pillar of economic development and an innovation engine.

In April, the National People's Congress passed the Private Sector Promotion Law, which took effect on May 20. The historic legislation, the first of its kind in China, gives private enterprise a stronger legal foundation. It codifies long-standing policies into law: equal access to resources, equal market competition and equal legal protection, regardless of ownership.

By integrating these pledges into the legislative and constitutional framework, Beijing sends the message that the private economy is not a temporary alternate route but a permanent support of China's socialist market economy. The law acknowledges the difficulties many private firms face, including technological disruption, external headwinds against exports, uneven local implementation of supportive policies and lingering public skepticism about private capital.

To address these challenges, the law mandates a swift revision of the negative list of market access, following the principle that "anything not forbidden is permitted." It also aims to open competitive infrastructure industries to all market participants, expand financing options and strengthen protection of property rights, contracts and intellectual property.

Taken collectively, these provisions are designed to move toward a more transparent and predictable business climate, critical to stabilizing expectations and restoring confidence among entrepreneurs.

The private sector's contribution to China's national economy is undisputed, providing more than 50% of government revenue, over 60% of GDP, about 70% of technological advances and more than 80% of urban jobs. Yet despite this, private firms often face financing limits, discriminatory market access and competition biased toward state-owned enterprises (SOEs). The new law seeks to change that by emphasizing innovation and supporting private firms in R&D, digital transformation and strategic sectors such as green technology. Equally important, it highlights long-term policy stability, signaling that the government's basic principles and policies concerning the development of the private economy have been incorporated into the system of socialism with Chinese characteristics.

By the end of May, China had over 58 million private enterprises, up 5.2% from a year ago. Including individual entrepreneurs, the number rose to 185 million entities, or 96.76% of the total business entities, increasing 2.3% year on year. These figures show that China's private economy is a strategic priority central to modernization, technological autonomy and high-quality growth.

The bigger question is what this growth means for the world, especially Asia. In an era of rising protectionism, including U.S. tariff hikes, a stronger Chinese private sector could benefit regional economies. Chinese firms lead the global supply of electric vehicles, batteries, solar panels and electronics, offering unmatched scale and cost advantages. By lowering green technology prices, Chinese private enterprises accelerate global decarbonization and make the energy transition more affordable for developing countries.

But this also comes with geopolitical friction. The United States and European Union accuse China of "overcapacity" and have imposed tariffs on Chinese EVs and clean-tech exports. These measures limit China's technology exports to Western markets, but also push Chinese firms to pivot decisively toward Southeast Asia, Central Asia, Africa and Belt and Road parter countries. Outbound investment from Chinese private firms brings not only capital but also technology transfer, jobs and deeper supply-chain integration.

The health of China's private economy has direct spillover effects. When entrepreneur confidence rises, household incomes and domestic investment also increase, driving higher demand for commodities, intermediate goods and high-value services across Asia.

Strategically, Asia is the main testing ground for China's private sector growth. Under ASEAN and RCEP frameworks, intermediate goods make up nearly two-thirds of China-Southeast Asia trade. Private firms, rather than SOEs, are at the core of this network, acting as suppliers, investors and innovators.

In regional platforms like BRICS, the SCO and ASEAN, Chinese private companies are often more agile than SOEs, moving quickly into sectors like fintech, e-commerce and infrastructure. This is how Beijing's idea of an "Asian consensus" takes shape — less through top-down coordination and more through bottom-up integration led by private capital and commerce.

Of course, external headwinds remain. American and European tariffs on Chinese clean-tech goods are an ongoing drag, and trade tensions may well get worse before they improve. Still, the direction is clear. By legislating protections, expanding access and sending clear political signals, Beijing is fostering a thriving private economy to sustain growth, innovation and regional integration.

For Asia, if China's reforms succeed, private firms could accelerate industrial upgrading, green transformation and integration across regional supply chains. If they falter, the risks will include rising trade disputes, uneven competition and renewed deflationary spillovers.

However, judging by China's achievements in its reform and opening up, we can assume that the decision to strengthen support for the private sector will further promote the development of new quality productive forces in the country, impacting both demand and supply in China and beyond.

With success of the above law, the Chinese private sector will receive equal treatment in procurement, credible protection of rights and consistent regulation. It will then become not just the engine of the domestic growth but a driver of shared prosperity across Asia and beyond, bringing yet another round of profound transformation of the country and the world at large. The rest of Asia — and the world — must prepare not only to adapt to this trend but also to ensure the benefits of China's private-sector growth are shared more broadly and sustainably.

Yasiru Ranaraja is a commentator on current affairs, a researcher on maritime issues and an expert on Belt and Road Initiative development. He is the founding director of BRISL, an international development organization in Sri Lanka.

来源：中国网一点号