A new department established within a national ministry has drawn attention and sparked discussion.

That’s right—it’s the “Bureau of Private Sector Economic Development.” Undoubtedly, this move is intended to address the challenges and difficulties facing private investment.

This “Bureau” is no small entity—what is it, what does it do, and what is its purpose? Some have even called for Jack Ma to serve as its director.

From an investment promotion perspective, is the establishment of the “Bureau of Private Sector Economic Development” a positive or negative development?

The key lies in whether it is intended to “regulate” private enterprises or to “serve” them.

Filling a Vacancy

A first in history! The Bureau of Private Sector Economic Development has been officially established. The news has drawn widespread attention.

From “0” to “56789”—this vividly illustrates the development of China’s private economy since the reform and opening-up.

In 1980, Zhang Huamei of Wenzhou received the first business license for an individual business operator.

In 1988, the number of employees in private enterprises exceeded that of state-owned enterprises for the first time in history.

For the first time, the private sector was recognized as accounting for “half the national economy.”

In 1992, the term “entrepreneur” appeared in newspapers for the first time.

Thirty years later, the number and scale of private enterprises have achieved leapfrog growth, exhibiting the “56789” characteristics:

contributing over 50% of tax revenue, 60% of GDP, 70% of technological innovations, over 80% of urban employment, and accounting for over 90% of all enterprises.

As early as 2018, it was stated: The private sector is an intrinsic element of China’s economic system, and private enterprises and entrepreneurs are our own people.

Since the beginning of this year, symposiums on private enterprises have been held across the country.

We often hear calls to support private enterprises in stabilizing expectations and boosting confidence, emphasizing the need for mutual understanding between the government and enterprises, and stressing that enterprises are our “bread and butter.”

Whoever stands in the way of enterprises will find themselves at odds with the provincial Party committee and provincial government.

That said, coordinating with enterprises in investment promotion is a major undertaking. The ultimate goal of this “coordination” is to resolve issues and clear obstacles for the development and growth of the private sector.

Some say this isn’t a “meddling mother-in-law” but rather an entity that appears to be here to assist the development of the private sector.

Others say this organization will become the “home” for the vast majority of private enterprises.

Both metaphors are quite vivid. However, there are also kind-hearted “mothers-in-law” who nurture and guide; as for the “home” of private enterprises, that role should belong to the Federation of Industry and Commerce at all levels.

If we must assign a role to the “Bureau of Private Sector Economic Development,” it is likely neither a “meddlesome mother-in-law” nor a “biological mother,” but rather a “true friend.”

Whether from the perspective of development, attracting investment, or assisting the private sector in its continuous growth, the “Bureau of Private Sector Economic Development” has effectively filled a gap.

What Does It Look Like?

The establishment of the Bureau of Private Sector Economic Development under the National Development and Reform Commission is a major policy decision made by the Central Committee of the Communist Party of China and the State Council.

The description of its primary responsibilities is roughly 100 words long. In summary, it encompasses three major functions: overall coordination, comprehensive policy implementation, and promotion of development.

From two perspectives, placing it within the NDRC is appropriate:

First, it is a department responsible for macroeconomic regulation and comprehensive economic management.

Second, it possesses strong cross-departmental coordination capabilities.

Since the “Bureau of Private Sector Economic Development” is part of the investment promotion team, what does that mean?

First, when we sit down together, we are equals.

In accordance with central government directives, the NDRC has established a communication mechanism with private enterprises, which is precisely one of the responsibilities of the newly established Bureau of Private Sector Economic Development.

Other relevant ministries and commissions, as well as many local Party committees and governments, have also established similar consultation and research systems. We sit down face-to-face to listen to opinions, address concerns, and coordinate solutions.

Second, at critical moments, we step in to lend a helping hand.

From the perspective of private entrepreneurs, this means speaking the truth, stating the facts, and offering candid advice; it means running businesses in compliance with laws and regulations and conducting operations with integrity.

When it comes to attracting investment, relevant departments and localities treat everyone equally—there is no special treatment. Service does not mean indulgence, and friends should not become “bad influences.”

To put it plainly, the role of the “Bureau of Private Sector Development” is not to supervise or discipline, but rather to “monitor and understand, analyze and assess, coordinate and facilitate, and provide support”...

In other words, decision-making bodies never intended to impose a “nagging mother-in-law” on the private sector, nor does the Bureau of Private Sector Economic Development intend to act as a “supervising authority.”

Currently, the challenges faced by private enterprises do not stem from major loopholes in the policy framework, but rather from invisible barriers. For instance, in investment promotion, these include breaking down market access barriers, ensuring the consistent implementation and effectiveness of policies, and fostering a fair market environment.

In fact, private enterprises do not crave preferential treatment in terms of policies; what they desire most is fair treatment. Compared to preferential policies such as tax breaks, providing private enterprises with a level playing field is what matters most.

Meeting with Private Entrepreneurs

Before the establishment of the “Bureau of Private Sector Development,” the All-China Federation of Industry and Commerce (ACFIC) was the primary entity dealing with private enterprises domestically; they were truly the “guardians” of private enterprises.

However, the All-China Federation of Industry and Commerce primarily serves a role in communication and coordination; to truly support private enterprises, one must rely on other ministries and commissions.

This time, the Bureau of Private Sector Economic Development has been established specifically to serve private enterprises. Regardless of how it operates in the future, the very act of its establishment highlights the state’s emphasis on private enterprises and its respect for private entrepreneurs.

So why was the Bureau of Private Sector Economic Development established now? In fact, this did not happen overnight.

Prior to this, the Director and Deputy Directors of the National Development and Reform Commission (NDRC) held a series of meetings and conducted field visits to numerous private enterprises. What exactly is the background of these enterprises?

On July 3, NDRC Director Zheng Zhejie presided over a symposium with private entrepreneurs—the first of its kind this year.

The symposium was attended by representatives from five companies: Sany Group, AUX Group, YTO Express, Bosideng, and Nongfu Spring.

Just a week later, Zheng Zhejie convened another symposium, this time inviting leaders from private enterprises such as Transfar Group, Fangda Group, Feihe Dairy, and Zhuoli Hansun.

Looking ahead, the NDRC’s official website shows that invited companies include Hengrui Medicine, Xinhecheng Group, NIO, Anta Group, TCL Group, and Jingye Group.

It is evident that prior to establishing the Bureau of Private Sector Economic Development, the NDRC had already done its homework thoroughly, and the announcement on September 4 was merely the “final push.”

Years of practice have proven that actively seeking input from private enterprises and listening to entrepreneurs’ voices is the “key focus” of investment promotion.

Consequently, local governments have placed greater emphasis on attracting investment from private enterprises.

That being the case, what aspects should local governments prioritize in their investment promotion efforts?

Strengthen industrial alignment with leading private enterprises

Based on local dominant industries and investment promotion plans, adopt the approach of “attracting upstream enterprises, connecting with downstream enterprises, focusing on leading enterprises, and driving supporting industries.”

By attracting large, high-quality private enterprises, we can shift investment promotion from a focus on “individual projects and single enterprises” to “building complete industrial chains and promoting industrial clustering.”

Accurately and Effectively Showcase the City’s Comprehensive Strength

This includes industrial support systems, development platforms, future growth prospects, and cultural heritage. The more developed a region is, the stronger its ability to attract private enterprises becomes.

This growing ability to attract private enterprises stems not only from the local area’s favorable business environment but also from city promotion efforts tailored to corporate needs, which draw a surge of private enterprises.

Maintain constant attention on enterprises at the end of the industrial chain

Enterprises at the end of the industrial chain are directly connected to the market and consumers. If they are poorly managed, fail to transform effectively, or even go out of business, it becomes quite difficult to resolve employment issues.

Many universities and research institutions have patents that remain uncommercialized, gathering dust in laboratories—a clear waste of resources. If these technologies could be integrated into enterprises along the industrial chain, they might bring about significant changes to local development.

Therefore, whether in investment promotion or economic development, we must listen to the genuine concerns of private entrepreneurs, formulate practical and effective policy measures, do our utmost to help enterprises resolve practical difficulties, and create a favorable development environment for private enterprises.

The establishment of a new bureau-level agency is merely one of many concrete measures to support the growth and expansion of the private sector. We look forward to seeing more initiatives and their effective implementation!