China banks on growing private sector, cutting-edge tech as it takes on the US

China has pledged to do more to grow its private sector and cutting-edge technologies in its government work plan for the year, as the world's second-largest economy seeks to consolidate its strengths amid growing tensions with the US.

- Aw Cheng Wei

BEIJING —

Premier Li Qiang, in his annual delivery of the report at the Great Hall of the People in Beijing, told a gathering of lawmakers on March 5 that the government will take "solid steps to implement policies and measures designed to spur the growth of the private sector".

The government will also "engage in regular communication with enterprises to help resolve their practical difficulties and problems", Mr Li said.

"We in government should conduct service-oriented administration and boost the confidence of enterprises with satisfactory services."

Premier Li was speaking at the opening of the National People's Congress (NPC) as part of the country's annual parliamentary sessions also known as the Two Sessions or lianghui.

China has been trying to grow its private sector since its economic troubles, including crippling local government debt and a high youth unemployment rate, began piling up. This followed a crackdown on tech enterprises and the property sector from as early as 2020.

In February 2024, the authorities started drafting a law that will require equal legal treatment of private enterprises and state-owned enterprises (SOEs). If passed, it will be China's first fundamental law dedicated to developing the private economy and address the country's longstanding practice of favouring SOEs.