Entrepreneurship a cornerstone for resilience in Chinese economy

The skyscrapers of the central business district (CBD) in Beijing, capital of China. [Photo/Xinhua]

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Five years ago, Chinese President Xi Jinping put forward "five hopes" for entrepreneurs – enhancing patriotism, promoting innovation, abiding by the law, taking social responsibilities, and expanding international horizons. Xi's call shows the country's determination to invigorate entrepreneurship and build a world-class business environment characterized by market orientation, rule of law, and openness.

Since 2020, China's commitment to creating a fair and vibrant business environment has been unwavering. Policies aimed at streamlining market access, particularly through the continuous refinement of the negative list for foreign investment, have opened doors for domestic and international entrepreneurs.

The 2025 edition of this negative list has further eased private investment restrictions in manufacturing and other sectors. This shift reflects China's determination to integrate more deeply into the global economy, providing a fertile ground for startups and established companies alike to innovate and compete globally.

By ensuring transparency and fairness in regulation and supervision, China has sent a clear message that all enterprises, regardless of size or origin, will be treated equally under the law. This enhances the predictability of the business environment and builds investor confidence – a vital ingredient for sustained entrepreneurship.

Workers at a production line of Chongqing Hwasdan Machinery Manufacturing Co., Ltd. in southwest China's Chongqing municipality, February 22, 2025. [Photo/Xinhua]

China's emphasis on patriotism, innovation, integrity, social responsibility, and openness among entrepreneurs is reflected in the remarkable progress made across emerging industries such as new energy vehicles, artificial intelligence, biotechnology, and green energy. These sectors are not only spearheading China's technological leap but also setting new global standards.

The country's privately owned brand BYD, for instance, outsold American EV maker Tesla with its stable of hybrid and electric vehicles last year. BYD's annual battery production capacity of 16GWh, according to the company's website, makes it a world leader in the production of power batteries. "China is now a global leader in innovation," CNN said in an article published in May.

The private sector has been especially resilient amid the global disruptions of recent years. Policies supporting tax relief, social security subsidies, and better financing options have empowered small and medium-sized enterprises to weather challenges brought about by economic uncertainties. These enterprises have become engines for job creation and industrial renewal, underpinning China's steady economic growth.

In response to trade uncertainties, the government has intensified efforts to support innovation ecosystems by protecting intellectual property rights, facilitating research and development, and improving financing conditions for startups. These measures are designed to reinforce the infrastructure that entrepreneurs need to thrive in a globalized, digital, and green economy.

The first half of 2025 provides an illustration of the resilience and dynamism of the Chinese economy. The country's GDP grew by 5.3 percent in the past six months, a figure that outshines many advanced economies grappling with ongoing trade tensions and inflationary headwinds. Industrial production expanded by 6.4 percent, which is largely driven by high-tech and advanced manufacturing sectors.

Looking forward, entrepreneurship will still remain a cornerstone of China's vision for high-quality development. The interplay of market forces, robust legal frameworks, and an open international stance provides a solid foundation for continued innovation-led growth. Entrepreneurs – with their creativity, risk-taking, and sense of responsibility – will be the architects of new industries and the drivers of social progress.

Xi's call in 2020 to promote entrepreneurship was not merely a policy statement; it was a blueprint for China's economic future. Five years later, the vision is unfolding in the achievements of Chinese enterprises and the steady resilience of China's economy. As China advances toward modernization, the entrepreneurial spirit will continue to be the engine powering its rise, not just in economic terms, but also in social and technological leadership on the world stage.