By Carol Yang

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China’s top economic planner acknowledged on Tuesday there is still room to improve the country’s business environment, a sign Beijing may roll out stronger support for the private sector even after this year’s passage of a law ensuring equal legal treatment and other protections for non-state firms.
“Despite notable progress in recent years, gaps remain in meeting the demands of the private sector and private enterprises’ expectations,” wrote Wu Xiaoyan, director general of the National Development and Reform Commission’s (NDRC) Centre for the Promotion of the Business Environment.
Wu’s article was published in the People’s Daily, the official newspaper of the ruling Communist Party.
In the piece, Wu called for strengthening the protection of property rights, regulating law enforcement as it relates to enterprises, developing diversified dispute resolution mechanisms and improving government services and conduct.
Those issues have been mentioned frequently by the country’s entrepreneurs as areas of concern in recent years, particularly in the realm of law enforcement. On that front, Wu emphasised the necessity of curbing the abuse of administrative discretion, preventing profit-driven fines and ending unauthorised cross-regional enforcement.
Beijing now has an opportunity to stabilise market sentiment and revitalise investor confidence, Wu added.
China’s private sector accounts for over 60 per cent of gross domestic product and more than 80 per cent of urban employment. However, business owners have long complained about limited market access, preferential treatment for state firms in obtaining financing and the seemingly arbitrary application of fines and other punitive measures by local law enforcement.
The private sector’s share of investment – often used as a gauge of confidence – dropped to its lowest level since 2010 last year, falling to just over half of China’s total fixed-asset expenditures. In the first eight months of 2025, private investment dropped 2.3 per cent from the year before.

In a high-profile symposium held in February in Beijing with some of the country’s most prominent entrepreneurs – the first of its kind since 2018 – President Xi Jinping reaffirmed the essential role of the private sector in the country’s economy and encouraged its enterprises and entrepreneurs to fully unleash their potential.
Following up on statements in this vein from Xi and other top policymakers, a 78-article law on the promotion of the private economy entered into force in May.
Working from that foundation, Wu vowed to accelerate the development of a legal framework that further protects the rights of private enterprises and entrepreneurs.
This will help stabilise private enterprises’ expectations, she wrote, reiterating the goal of creating a “stable, fair, transparent and predictable environment”.
Wu’s article comes shortly after a similar vow from the State Council, China’s cabinet.
Earlier this month, the council said it would work to remove hidden barriers and address other concerns raised by entrepreneurs to allow for “confident and profitable” private investment, state news agency Xinhua reported.
Expectations have been running high for more concrete measures to boost business and investor confidence to make up for trade tensions and slower rates of growth in domestic consumption. More signals could come from the 15th five-year plan, the policy blueprint document for the period from 2026 to 2030 currently being drafted by the NDRC.
Wu said stable expectations are a major driver of motivation and vitality for private enterprises.
“In the current climate of rising uncertainties, a clear and predictable outlook encourages investors to commit capital, businesses to expand production and consumers to spend.”