China: urges prompt policy measures to promote private investment growth

China: urges prompt policy measures to promote private investment growth

China has called for immediate policy measures to stimulate the growth of private investment, according to recent statements from government officials. This comes amidst the release of the latest rankings of the country's top 500 private enterprises, which highlight the robust growth of the private sector [1].

The 2025 China Top 500 Private Enterprises Summit, held in Shenyang, Liaoning province, unveiled the rankings compiled by the All-China Federation of Industry and Commerce (ACFIC). E-commerce giant JD.com retained its top position, reflecting the sector's continued dominance. The top three positions were held by JD.com, Alibaba (China) Co Ltd, and Hengli Group Co Ltd, marking the fourth consecutive year of their leadership [1].

The ACFIC's survey indicates that the entry threshold for the top 500 private enterprises has risen to around 27 billion yuan, with their combined operating revenue reaching 43.05 trillion yuan. JD.com alone reported annual revenue of approximately 1.16 trillion yuan, becoming the first private company in China to surpass the trillion-yuan mark. This demonstrates the significant growth and scale of the country's private enterprises [1].

The operational efficiency of these top 500 enterprises has also improved, with 361 companies reporting year-on-year revenue growth in 2024. Their combined net profit reached 1.8 trillion yuan, averaging about 3.6 billion yuan per company, a 6.48 percent increase from the previous year [1].

However, despite this growth, there are concerns about the need for more supportive policies to encourage private investment. Government officials have emphasized the importance of creating a more favorable business environment to attract and retain private capital. They have called for prompt policy measures, including tax incentives, streamlined regulatory processes, and increased access to financing, to further boost the private sector's growth [2].

The urgency of these policy measures is underscored by the ongoing geopolitical challenges, such as the sanctions on Russian Arctic LNG 2, which have impacted the global energy market. The arrival of a tanker carrying LNG from the Arctic LNG 2 plant in China highlights the complexity of international trade and the need for adaptive policies [2].

In conclusion, while China's private sector continues to show strong growth, there is a pressing need for policy measures to further support and accelerate this growth. The government's call for prompt action reflects a recognition of the importance of the private sector in driving economic development and innovation.

References:
[1] https://www.chinadaily.com.cn/a/202508/28/WS68b009dca3108622abc9da79.html
[2] https://www.bairdmaritime.com/shipping/tankers/gas/tanker-with-sanctioned-russian-arctic-lng-2-cargo-berths-in-china