context: High-quality development is being framed as the state's answer to 'involution'—excessive, zero-sum competition. Publications in Qiushi, the flagship theoretical journal of the Party Committee, particularly by top leaders, are highly significant, setting the ideological tone and policy direction for the entire country. This piece by Xi Jinping 习近平 follows a July 2025 essay that diagnosed the problems of 'involution-style' competition and overcapacity, blaming it on flawed local government incentives and market fragmentation. Xi's article serves as the authoritative prescription, urging the private sector to move beyond destructive price wars and align with the national strategy of creating genuine value through innovation, ensuring 'healthy' and 'high-quality' growth.
In a speech originally delivered on 17 February 2025, Xi Jinping 习近平 reaffirmed the PRC's unwavering support for the private economy, framing it as an indispensable part of the PRC's socialist market economy and a key driver for the new era.
Xi acknowledged that the private sector faces significant challenges, including technological disruption, difficult market conditions and inconsistent policy implementation, but stressed these are 'temporary' and 'solvable' problems encountered during development and transformation. He reiterated that the Party's basic policies on supporting the private sector will not change.
Xi highlighted the private sector's substantial contributions, noting it accounts for over 92 percent of enterprises, more than 50 percent of tax revenue and foreign trade and over 80 percent of urban employment. To address current difficulties and foster high-quality development, he outlined five key policy areas requiring solid implementation
- ensuring fair market access
- break down barriers preventing private firms from equally using factors of production and participating in market competition
- revise and implement a new market access 'negative list' to ensure 'what is not forbidden is permitted'
- further open competitive areas of infrastructure to all types of businesses and support capable private firms in undertaking national science and technology projects
- resolving payment arrears
- tackle the issue of government bodies and SOEs (state-owned enterprises), particularly central SOEs, being in arrears to private companies
- urged governments and SOEs to take the lead in settling outstanding debts and use tools like new local government special bonds to accelerate clearance
- providing legal protection
- protect the legitimate rights and interests of private enterprises and entrepreneurs in accordance with the law
- improve the system of discretionary administrative penalties to regulate fines, fees and inspections, preventing arbitrary law enforcement that disrupts normal business operations
- implementing relief policies effectively
- increase the precision and accessibility of government support policies to ensure businesses feel the benefits
- treat all enterprises of the same type equally when providing assistance and adopt comprehensive measures for those needing more than simple, one-off solutions
- building 'close and clean' government-business relations
- called on officials to be proactive in serving businesses while remaining free of corruption
- entrepreneurs are also expected to engage with officials frankly but must not engage in bribery or corrupt practices
Xi laid out five expectations for private entrepreneurs, urging them to
- be patriotic
- pursue high-quality development through innovation
- improve their corporate governance
- operate with integrity
- actively fulfil their social responsibilities toward employees, the environment and public welfare