PRESS RELEASE: CGTN: Private sector helps boost China's economy hit by virus

(Information sent by the signatory company).

PRESS RELEASE: CGTN: Private sector helps boost China's economy hit by virus

(Information sent by the signatory company)

BEIJING, Dec. 29, 2022 /PRNewswire/ -- China's top leaders have pledged unwavering support to the private sector to boost the COVID-19-hit economy, as the fast-growing private sector has played a major role in creating new jobs, promoting technological innovations and stabilizing economic growth.

The Central Economic Work Conference, held in mid-December to set economic priorities for 2023, advocated for the equal treatment of private companies and stressed the law-based protection of private companies' property rights and the interests of the businessmen.

The conference hoped for a general improvement in the economy and strong momentum from the market conference next year, and encouraged more private capital to participate in the construction of key national projects.

The private economy has continued to experience strong growth despite the challenges posed by COVID-19. From January 2020 to August 2022, the number of Chinese private companies increased from 35.2 million to 47.0 million. In 2021, they represented 92.1% of all companies.

In 2021, the private sector contributed 48.6 percent of foreign trade, 56.5 percent of investment in fixed assets, 59.6 percent of tax revenue, more than 60 percent of GDP, more than 70 percent of technological innovations and more than 80 percent of urban employment.

The foreign trade value of private enterprises was 19 trillion yuan (2.7 trillion US dollars) in 2021, up 26.7% year-on-year. It exceeded 14.03 trillion yuan for foreign-invested enterprises and 5.94 trillion yuan for state-owned enterprises.

China's 500 largest private enterprises

China's 500 largest private companies are performing the strongest, with the entry threshold for operating income rising from 20.2 billion yuan in 2019 to 26.4 billion yuan in 2021.

They have also injected a strong growth momentum into foreign trade. The value of its exports doubled, from 121.2 billion yuan in 2019 to 245.4 billion yuan in 2021.

In 2021, the total revenue of the top 500 enterprises reached 38.3 trillion yuan, with net profit of 1.73 trillion yuan. They contributed 1.37 trillion yuan to taxes and provided 10.9 million jobs.

More than 60% of the 500 largest companies were concentrated in the secondary industry, with manufacturers representing 60.2% of companies and 58.8% of revenues.

Among the top 500 companies, 393 are located in eastern China, with 107 companies from Zhejiang province and 92 from Jiangsu province. On the list are 60 companies from central China, 40 from the west and seven from the northeast.

China's top 500 private enterprises have driven technological innovation, with the total number of valid patents rising from 398,215 in 2019 to 633,922 in 2021. Last year, the number of total valid patents increased 53.6 percent over the previous year. last year, while valid international patents soared 474.7 percent year-on-year.

Chinese tech giants Huawei, Alibaba and Tencent were the top three investors in the most research and development in 2021, investing 142.7 billion yuan, 57.8 billion yuan and 51.9 billion yuan, respectively.

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