The number of China's newly registered private enterprises in the first quarter reached 2.04 million, surged by 10.7 percent year-on-year, China's State Administration for Market Regulation (SAMR) unveiled on Thursday, indicating a strong momentum in the domestic market.
The number of newly registered enterprises in China's central region reached 519,000, increasing by 20.8 percent year-on-year, with the number in the western region reaching 441,000, up by 30.2 percent year-on-year, reflecting a more balanced development trend across various regions.
Enterprises in the tertiary industry accounted for nearly 80 percent of newly registered enterprises which reached 1.61 million. The hotel and catering sector recorded a 35.7 percent year-on-year growth and the business service sector recorded a 15.5 percent year-on-year growth. The two sectors which were heavily affected by the COVID-19 epidemic saw a rapid recovery during the recorded period.
The number of newly registered enterprises in the primary industry reached 76,000, and the number for enterprises in the secondary industry reached 349,000, according to the data. By the end of March, the number of registered enterprises nationwide surpassed 49 million, with private enterprises accounting for 92.3 percent of the total number.
China's private economy contributes to over 50 percent of tax income, over 60 percent of GDP and over 80 percent of urban jobs, which has become an indispensable driving force for China's economic growth.
Experts suggested that supporting private enterprises is a crucial way of stabilizing employment and fiscal revenues, which in turn boosts the macro economy.
China vowed to support the healthy development of private businesses, according to the Report on the Work of the Government delivered at the Fifth Session of the 13th National People's Congress in March, 2023.
China will implement policies and measures to support the development of the private sector, and encourage and guide private enterprises in reform and innovation. In addition, China will improve the system for supporting debt financing for private enterprises, achieving full implementation of a registration-based IPO system, and promote steady and sound development of the capital market, according to the report.