"China's economy is like a towering tree. To evaluate the health of this tree, we can simply look at its strong trunk and lush leaves. The trunk can be compared to the public sector of the economy, while the branches represent the non-public sector. They complement each other and grow together."

Recently, on People's Daily's "Stories of China's High-quality Development" program, Huang Hanquan, president of the Chinese Academy of Macroeconomic Research, emphasized that the basic socialist economic system is an important pillar of socialism with Chinese characteristics. Both the public and non-public sectors are essential components of the socialist market economy, serving as the foundation for China's economic and social development. According to Huang, China's economic foundation can only be strengthened when the public sector maintains its dominant role while diverse forms of ownership continue to flourish, providing the economy with "strong roots and flourishing branches."

At the Axi Ranch, 4,000 meters above sea level in Aba Tibetan and Qiang Automous Prefecture, southwest China's Sichuan Province, herder Tashi chats with family by video while tending his livestock. This was made possible thanks to the communication tower built by China Tower Co., Ltd. at the end of 2022.

"Now I can stay connected with my family even when I'm far away herding the cattle," Tashi explained. "This was impossible before. Previously, I had to ride my motorcycle more than 10 kilometers just to make a phone call, and even then the signal was unreliable."

Why is it essential to consistently strengthen and develop the public sector?

Huang said state-owned enterprises, particularly central state-owned enterprises, play an irreplaceable role in implementing national strategies and safeguarding both the country's economy and people's livelihoods. By 2023, these central enterprises accounted for over 70 percent of activities in sectors crucial to national security, the economy, and public welfare.

"Dedicate yourself, and you will succeed" is the guiding principle of Jinjiang, a city in Fujian Province that has pioneered China's private sector development. The "Jinjiang Experience" has become a model for economic development.

"Being a boss in Jinjiang isn't very impressive because on average one in every seven people is a boss and there is one enterprise for every 21 people," said Zhou Shaoxiong, chairman of the Quanzhou Chamber of Industry and Commerce and founder of the Septwolves clothing brand in Quanzhou, Fujian Province. "The defining feature of the drastic changes of Jinjiang is its efforts to earnestly develop the real economy. We are all witnesses and beneficiaries of this process," said Zhou.

Why is it essential to unswervingly encourage, support, and guide the development of the non-public sector?

Huang said that the private sector is a crucial outcome of China's socialist market economy and a vital force in promoting Chinese modernization. As an integral part of China's economy, the private sector has been instrumental in stabilizing growth, promoting innovation, increasing employment, and improving people's livelihoods.

Across China, regions have been actively exploring ways to implement the "'two no irresolutions" principle (no irresolution about consolidating and developing the public sector and no irresolution about encouraging, supporting, and guiding non-public sector development).

The Hangzhou-Wenzhou high-speed railway, which opened in 2024, exemplifies China's mixed-ownership reform in the railway sector. This pioneering project demonstrates successful private investment in railway infrastructure: BSHW, a private investment entity, holds a controlling 51 percent stake, while the remaining 49 percent is jointly held by the State Railway Group and local government.

Liu Shengjin, director and deputy general manager of BSHW, said: "Wenzhou in Zhejiang Province has prospered by embracing reform and following the path of opening-up, making it a hub of vibrant private enterprise. At that time, the nation was actively promoting reforms in the railway sector and piloting private investment in major infrastructure projects. When the proposal to allow private investment in railway construction was introduced, Zhejiang Province took up this initiative and proposed that the Hangzhou-Wenzhou Railway should be built under private-sector controlling ownership."

Whether at the central or local level, involving state-owned or private enterprises, each reform measure and every project achievement serves as a vivid demonstration of China's commitment to the "two no irresolutions" principle.

The development and growth of the socialist economy ultimately leads to the common progress of the public and non-public sectors. This entails the maintenance and appreciation of state-owned assets alongside the development and expansion of the private economy.

Essentially, the private economy and the public economy are not in opposition to each other. On the contrary, they are complementary and symbiotic.

From the perspective of the economic division of labor, both the private and public economies serve as the forms and means of economic development working together to support the construction of socialism with Chinese characteristics while mutually benefiting each other

From the perspective of the social division of labor, only through the combination of the two can China meet the increasing aspirations of the people for a better life bringing a stronger sense of gain to the people.

Huang said through upholding and implementing the "two no irresolutions" principle, and fully mobilizing the enthusiasm of both the public and private economies, as well as central and local enterprises and entrepreneurs, the task of building a high-standard socialist market economy system will surely be successfully completed, providing important institutional guarantees for achieving Chinese modernization.