Core Insights - The private economy in China has significantly strengthened during the "14th Five-Year Plan" period, characterized by "two 92%": private enterprises account for over 92% of the total number of enterprises, and over 92% of national high-tech enterprises are private [1][2] - The vitality of the private economy is attributed to effective "addition, subtraction, multiplication, and division" strategies: increasing financing, reducing burdens, driving innovation, and removing barriers. By 2024, China is expected to have 372 unicorn companies with a total valuation exceeding $1.2 trillion [1][5] - The market access negative list has been iteratively released five times, reducing the number of items from 151 in 2018 to 106 by 2025, indicating a trend of "shorter lists and more active markets" [1][5] Financing and Investment - During the "14th Five-Year Plan," tailored investment and financing policies have been introduced for private enterprises, with over 3 trillion yuan in projects being promoted to private capital by 2025 [3] - The growth rate of loans to private enterprises has exceeded the average growth rate of all loans by 1.1 percentage points, addressing the challenges of financing difficulties and high costs [3] Cost Reduction and Efficiency - The government has implemented reforms to reduce institutional transaction costs, with tax reductions and exemptions for private economic taxpayers totaling 7.2 trillion yuan from 2021 to mid-2023, accounting for 72.9% of the total tax reduction [3][4] - The application of electronic business licenses has been expanded, with downloads reaching 370 million and usage exceeding 600 million times, facilitating business operations [3] Innovation and Growth - Support for private enterprises in undertaking major national technological tasks and participating in international technological competition has been emphasized, with a focus on investing in emerging and future industries [4][5] - The emergence of unicorn companies, represented by the "Hangzhou Six Little Dragons," highlights the successful growth of private technology enterprises [5] Business Environment Improvement - The establishment of a dedicated bureau for the development of the private economy and the implementation of laws and regulations to promote fair competition have contributed to a more stable and transparent business environment [5] - The continuous optimization of the market access negative list and the removal of 4,218 regulations that hinder fair competition have further released the vitality of the private economy [5]