A worker stretches an aluminum panel at a private company in Quangang district, East China's Fujian Province on August 22, 2023. In recent years,the district has actively optimized the business environment, helping enterprises address labor shortages and capital demand to promote the high-quality development of the private economy. Photo: cnsphoto

China will ramp up policy support and provide better services to the private sector, a senior Chinese official said on Monday, as part of the country's broad efforts to promote the nation's private economy, a crucial driving force for the world's second-largest economy.

The nation will organize six major service platforms to deliver quality services to private firms, Wei Dong, head of the bureau for private economy development under the National Development and Reform Commission (NDRC), told the China Economic Roundtable on Monday, according to the Xinhua News Agency.

One platform will be focused on reviewing the effectiveness of support policies for private enterprises so as to make the policies more forward-looking, targeted and effective. Two platforms will concentrate on seeking advice from all social sectors concerning the private sector's development and facilitating the sector's exchanges and cooperation with the world to elevate its competitiveness in the global arena, according to Wei.

The other platforms will be focused on strengthening the monitoring and assessment of private firms, as well as enhancing their publicity, the senior official said.

"Connecting various resources through platform services is a good policy direction. Meanwhile, it is also necessary to strengthen the construction of platforms for docking resources such as financing, scientific research and innovation, talent and data elements," Pan Helin, a professor with Zhejiang University's International Business School, told the Global Times on Monday.

Since the start of the year, Chinese authorities have rolled out measures to bolster the private sector and enhance the expectations of entrepreneurs, and more policies are anticipated.

"Private firms will receive more favorable policies," Wei said, noting that his bureau is establishing a monitoring indicator system, and will pay close attention to and promptly promote the resolution of major emerging problems in the private sector.

In September, China set up the bureau for private economy development under the NDRC, sending a reassuring signal to domestic private players that the country is resolved to improve the business environment by taking concrete actions to promote the economic recovery, which has been on a bumpy path over recent months, experts told the Global Times.

Prior to that, the authorities issued a 31-piont guideline in July to boost the private economy, promising to improve its business environment, enhance policy support and strengthen the legal guarantee for its development.

"The development of the private economy has shown marginal improvement, highlighted by the continued recovery of private investment in the secondary sector," Wei said, adding that the industrial growth rates and foreign trade performances of private enterprises have been better than the overall situation.

Since July, 124 listed private firms have issued their investment announcements. Among them, 42 have invested more than 1 billion yuan ($137 million), with the largest investment worth 18 billion yuan, the Shanghai Securities News reported.

"The good recovery momentum of the private sector means a significant lifting role for the improvement of employment and internal circulation, helping to continuously release economic vitality and promote economic transformation," Zhou Maohua, an economist at China Everbright Bank, told the Global Times on Monday.

Private businesses have played an increasingly pivotal role in spurring economic growth, creating jobs and revving up technological innovation over the past decades.

They generate over 50 percent of tax revenue, over 60 percent of GDP, over 70 percent of technological innovation achievements and over 80 percent of urban employment. Private firms also account for 90 percent of all enterprises, according to official data.

Some small and medium-sized firms still face difficulties and challenges as the domestic economic recovery needs to strengthen its fundamentals, Zhou noted.

"Macro policies are needed in a precise and targeted way to reduce their costs and relieve financing pressure," he said.