The private sector plays a pivotal role in technological innovation, digital transformation and green development, driving the development of new quality productive forces in China, said a scholar on Tuesday.
In an interview with China Global Television Network, Wang Yaojing, assistant professor in economics at Peking University, said private enterprises are indispensable and fundamental forces for fostering new quality productive forces.
"There are three major aspects to the new productive force development where private enterprises play pivotal roles. So first is technological innovation, as we mentioned, 70 percent of all technological innovations in China come from private enterprises," Wang said.
"And the second is digital transformation. Right now, digital economy is more than 40 percent of China's GDP and is promoting total factor productivity in all industries, even in traditional manufacturing. And private enterprises are the most active participants and actually leaders in this area," she said.
"And finally is green development. China's private enterprises are investing heavily in new energy technologies and energy saving solutions, including solar panels and electric vehicles. And they are indispensable forces and a solid foundation for the development of new quality productivity," said the assistant professor.
As of 2023, over 2 million invention patents came from national high-tech enterprises and small and medium-sized sci-tech enterprises, accounting for nearly 75 percent of China's total.
Noting the strong motivation of private enterprises for technological innovations, Wang pointed out that the innovations can in turn add impetus to the growth of the private economy.
"Private enterprises are flexible and more willing to take risks and invest in new, unproven technologies. And this risk-taking culture in private enterprises can lead to breakthrough innovations that might not be pursued by more risk-averse public entities. And private enterprises are more flexible and market oriented, meaning that they are faster in allocating resources towards research and development aimed at meeting specific market needs," Wang saaid.
"So overall, the private sector is able to bring a diversity of perspectives and approaches to technological innovation, which can in turn lead to a more innovative and creative solutions, leading to a more dynamic and innovative economy that help private enterprises thrive," she said.
Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector.
The draft Private Sector Promotion Law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.
Private sector plays key role in fostering new quality productive forces: professor
