The third plenary session of the 20th Communist Party of China (CPC) Central Committee proposed many significant measures and institutional arrangements to ensure the implementation of and adherence to the "two no irresolutions" principle, which is no irresolution about consolidating and developing the public sector and no irresolution about encouraging, supporting, and guiding non-public sector development.

To accurately understand the "two no irresolutions" principle, three misconceptions that currently exist regarding private enterprises must be clarified, said Huang Hanquan, Secretary of the Party Committee and president of the Chinese Academy of Macroeconomic Research.

The first misconception is the stigmatization of private enterprises. Some personal media accounts have been eager to fabricate entrepreneurs' family stories, spreading rumors that entrepreneurs are fleeing or taking their statements out of context, in an attempt to stir controversy and draw criticism from internet users. Some views incorrectly blame China's economic and social challenges, such as the widening income gap, on private sector development.

Over the 45 years since the reform and opening up, private high-tech companies like Huawei and BYD have emerged and thrived in a competitive environment. The rapid development of mobile internet has paved the way for the success of internet companies such as Xiaomi, Meituan, and Bytedance. These private enterprises have been instrumental in bolstering China's competitiveness in the high-tech sector and driving the commercialization of scientific research breakthroughs.

In fact, the private economy is an important driving force for the development of the socialist market economy, and the improvement of the redistribution mechanism.

The private economy, especially small and micro enterprises and individual businesses, has made significant contributions to promoting employment and guaranteeing and improving people's livelihood.

The second misconception is that the development of the public economy will inevitably squeeze the space for the development of the private economy. Some people believe that strengthening the public sector will inevitably crowd out private enterprise, creating a "public sector advances, private sector retreats" scenario. The argument has essentially framed a conflict where it is "state" versus "people" and the "public" versus "non-public".

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.

The third misconception is the exit of the private economy. For some time, there has been a misguided notion, known as the "exit of the private economy." This perspective suggests that the private sector has completed its mission and should withdraw from the stage of history.

Such claims fail to understand China's fundamental economic system and do not recognize the status and role of the private sector in the socialist market economy. The private sector is an essential component of the socialist market economy. Whether state-owned or private, each economic sector serves as a vital tool for economic development and provides the social foundation for national development.

In fact, the private sector will not exit because it holds an important status in the Chinese economy. The private economy primarily consists of medium, small, and micro-sized enterprises, accounting for over 95 percent of all businesses in China and 60 percent of China's GDP.

Over the years, the CPC Central Committee has always adhered to the "two no irresolutions" principle and maintained that the non-public sector's status and functions in the country's economic and social development have not changed. The principle and policies to unswervingly encourage, support and guide the development of the non-public sector have not changed, and the principle and policies to provide a sound environment and more opportunities to the sector have not changed, considering private enterprises and entrepreneurs as "our own people."

Huang said that clarifying these misconceptions helps us better adhere to and implement the "two no irresolutions" principle. The third plenary session of the 20th CPC Central Committee proposed many significant measures and institutional arrangements to ensure the implementation of and adherence to the "two no irresolutions" principle.

The measures and arrangements also aim to optimize the policy and institutional environment for the development of various forms of ownership in the economy, guarantee equal access to factors of production, fair participation in market competition, and equal legal protection, and ensure various forms of ownership in the economy complement each other's advantages and achieve common development.