Xi Jinping, General Secretary of the CPC Central Committee, President of the People's Republic of China, and Chairman of the Central Military Commission 3 Moon 4 Speech delivered in the afternoon while attending the joint group meeting of members from the China Association for Promoting Democracy and the All-China Federation of Industry and Commerce at the Fourth Session of the 12th National Committee of the Chinese People's Political Consultative Conference. 9 The full text was released today, and the speech emphasized the need to unswervingly uphold our country’s basic economic system and promote the healthy development of all forms of ownership. This can be seen as a “reassurance” for the healthy development of the non-public sector economy. CCTV News has summarized General Secretary Xi’s speech. 5 Particularly noteworthy in the speech of over a thousand words: 10 A short message to share with netizens.

1 “A never wavering”

[Original Speech Text] The reason I’ve briefly highlighted these key policy principles here is to underscore that our Party’s stance on upholding the basic economic system is clear, consistent, and continually deepening—never wavering. This point is explicitly stated in the Constitution of the Communist Party of China, and it will not—and cannot—change.

2 The three “unchanged” aspects

[Original Speech Text] The status and role of the non-public sector in China’s economic and social development remain unchanged. Our unwavering policy of encouraging, supporting, and guiding the development of the non-public sector has not changed. Nor has our commitment to creating a favorable environment and providing more opportunities for the development of the non-public sector.

3 Demolish the “Three Gates,” overthrow the “Three Mountains.”

[Original Speech Text] In policy implementation, phenomena such as “glass doors,” “spring doors,” and “revolving doors” are widespread... Regarding the difficulties currently encountered, some private entrepreneurs describe them as facing “three towering mountains”: an iceberg of market challenges, a high mountain of financing constraints, and a volcano of transformation pressures. ?

4 The new type of government-business relationship can be summed up in “two words.”

[Original Speech Text] I often wonder what the new type of government-business relationship should look like. To put it briefly, in my view, it boils down to two words: “close” and “clean.”

5 The key to implementing policies lies in “the last mile.”

[Original Speech Text] On the one hand, we need to refine policies, enhancing their substance and operational feasibility. On the other hand, we must step up efforts to ensure that these policies are fully implemented, leaving no room for even the slightest deviation. The root cause of issues such as failure to implement policies or inadequate implementation, as well as distorted implementation, lies primarily in the “last mile” challenge.

6 To ensure the healthy growth of non-public economic actors, it’s important to focus on three areas of “self-strengthening.”

[Original Speech Text] At last year’s Central United Front Work Conference, I emphasized that for the non-public sector economy to develop healthily, it is essential that the individuals in the non-public sector economy themselves grow and thrive in a healthy manner. All those working in the non-public sector economy should also recognize this point and strengthen their self-learning, self-education, and self-improvement.

7 The three “more” suggest that the non-public sector’s development can certainly achieve even greater accomplishments.

[Original Speech Text] China’s economic development demonstrates strong resilience, ample potential, and significant room for maneuver. China remains the world’s best country for investment opportunities. The development of the non-public sector and the space for entrepreneurs in the non-public sector to showcase their talents have become even broader, offering more abundant opportunities and brighter prospects—fully enabling them to achieve even greater accomplishments.

8 The “Three Benefits” of the Anti-Corruption Campaign

[Original Speech Text] The fight against corruption not only helps purify the political environment but also contributes to cleansing the economic ecosystem. It helps straighten out market order, restoring the market to its true nature and reversing the distortions that have been imposed upon it. If many individuals—whether wielding great or small power—are engaged in extortion, deliberately creating obstacles for personal gain, or engaging in illicit transfers of benefits and behind-the-scenes dealings, how could this possibly be conducive to economic development? ?

9 There’s one thing you absolutely must not do!

[Original Speech Text] I’d also like to point out that some of the corruption cases we’ve investigated involve private enterprises. In some instances, the leading officials involved proactively solicited bribes; in others, business operators themselves took the initiative to offer bribes. If it’s the case of officials proactively soliciting bribes, it means we haven’t exercised sufficient oversight and discipline—and we must step up our efforts in this regard. But if business operators themselves took the initiative to offer bribes, we should take this as a serious warning and absolutely avoid doing anything like this in the future!

10 We need to recommend non-public economic figures who embody the “three strengths and one excellence.”

[Original Speech Text] We must adhere to established standards, follow strict procedures, conduct thorough assessments, and carry out comprehensive evaluations to genuinely recommend those non-public-sector economic representatives who are strong in ideological and political qualities, highly representative within their industries, capable of actively participating in state governance and policy-making, and enjoy high social credibility.

Unswervingly uphold our country’s basic economic system.  

Promote the healthy development of economic sectors with various forms of ownership.

Hello, everyone! Today, Comrade Yu Zhengsheng and I have come to visit the members of the All-China Federation of Industry and Commerce and the China Association for Promoting Democracy from the National Committee of the Chinese People's Political Consultative Conference. I’m delighted to be here with all of you, engaging in discussions and exchanges. First of all, on behalf of the Central Committee of the Communist Party of China, I would like to extend our heartfelt greetings to all the members present—and through you, to the broad membership of the China Association for Promoting Democracy and the All-China Federation of Industry and Commerce, as well as to all CPPCC members from the non-public sector!

Just now, everyone delivered excellent remarks on issues such as maintaining sustained and healthy economic development, advancing supply-side structural reform, and promoting the healthy development of the non-public sector economy. You put forward valuable and weighty opinions and suggestions, which the relevant departments should carefully study and incorporate.

Over the past year, faced with a complex and intricate international landscape and daunting domestic tasks of reform, development, and stability, we have, in accordance with the strategic arrangement of coordinating the “Four Comprehensive” initiatives, adhered to the general principle of pursuing progress while maintaining stability, firmly grasped the initiative in economic and social development, proactively adapted to the new normal of economic growth, and deftly addressed major risks and challenges. As a result, our economic growth has continued to rank among the highest in the world; reforms have been comprehensively launched and deepened; and significant new progress has been made in economic, political, cultural, social, and ecological civilization development. Throughout the year, we successfully accomplished our key targets and tasks, bringing the 12th Five-Year Plan to a successful conclusion.

These achievements have been hard-won—they are the result of the strong leadership of the CPC Central Committee, the united efforts of all ethnic groups across the country, and the dedication and wisdom of the democratic parties, the All-China Federation of Industry and Commerce, and each and every one of you present here. Last year, the Central Committee of the China Association for Promoting Democracy and the All-China Federation of Industry and Commerce leveraged their respective strengths to conduct in-depth investigations and studies on a range of key issues, including promoting the development of the Yangtze River Economic Belt, implementing targeted poverty alleviation, accelerating the commercialization of scientific and technological achievements, fostering a favorable innovation environment, encouraging private enterprises to participate in the Belt and Road Initiative, and supporting the development of small and micro-sized enterprises. They put forward many valuable opinions and suggestions, greatly boosting our work. I would like to extend my heartfelt gratitude to all of you!

Next, in light of everyone’s remarks and the issues you’re concerned about, I’d like to share a few points of view.

I. Uphold and improve the basic socialist economic system.

The basic economic system—under which public ownership plays the dominant role and diverse forms of ownership develop jointly—is a major policy established by the Communist Party of China. It is an important component of the socialist system with Chinese characteristics and also an inevitable requirement for perfecting the socialist market economy system.

China’s non-public-sector economy has developed under the guidance of the Party’s policies and principles since the reform and opening-up, charting a path that has been pioneered under the leadership of the Communist Party of China. At the 15th National Congress, the CPC established “public ownership as the mainstay, with diverse forms of ownership developing together” as China’s basic economic system, and explicitly stated that “the non-public-sector economy is an important component of China’s socialist market economy.” At the 16th National Congress, the CPC proposed “unswervingly consolidating and developing the public-sector economy” and “unswervingly encouraging, supporting, and guiding the development of the non-public-sector economy.” At the 18th National Congress, the CPC further emphasized: “We must unswervingly encourage, support, and guide the development of the non-public-sector economy, ensuring that all forms of ownership equally access production factors in accordance with the law, fairly participate in market competition, and receive equal legal protection.” At the Third Plenary Session of the 18th CPC Central Committee, it was proposed that... Both the public-owned economy and the non-public-owned economy are important components of the socialist market economy and serve as crucial foundations for China’s economic and social development. Property rights in the public-owned economy are inviolable, and property rights in the non-public-owned economy are equally inviolable. The state protects the property rights and legitimate interests of all forms of ownership, upholds equality of rights, equality of opportunity, and equality of rules, abolishes unreasonable regulations targeting the non-public sector in various forms, removes all hidden barriers, and boosts the vitality and creativity of the non-public sector. The Fourth Plenary Session of the 18th CPC Central Committee proposed “improving the property rights protection system with fairness as its core principle, strengthening protection of property rights of economic organizations of all forms of ownership and natural persons, and clearing away legal and regulatory provisions that violate the principle of fairness.” The Fifth Plenary Session of the 18th CPC Central Committee emphasized “encouraging private enterprises to enter more sectors in accordance with the law, introducing non-state-owned capital into the reform of state-owned enterprises, and further boosting the vitality and creativity of the non-public sector.”

The reason I’m briefly highlighting these key policy principles here is to illustrate that, Our Party’s stance on upholding the basic economic system is clear, consistent, and continually deepening—it has never wavered. This point is explicitly stated in the Constitution of the Communist Party of China, and it will not—and cannot—change.

I reiterate here, The status and role of the non-public sector in China’s economic and social development remain unchanged. Our unwavering policy of encouraging, supporting, and guiding the development of the non-public sector has not changed. Nor has our commitment to creating a favorable environment and providing more opportunities for the development of the non-public sector. 。

Our country is a socialist state led by the Communist Party of China. The public-owned economic sector has evolved over a long period in our national development journey and has made outstanding contributions to national construction, national defense and security, and the improvement of people’s livelihoods. It is a precious asset shared by all the people, and naturally, we must ensure its healthy development and continue to enable it to contribute to reform and opening-up as well as modernization efforts. Our emphasis on consolidating and developing the public-owned economic sector is not at odds with our encouragement, support, and guidance of the development of the non-public-owned economic sector; rather, these two approaches are organically unified. Given the sheer size of our country, its large population, and the fact that we are—and will remain for a long time—in the primary stage of socialism, if we are to boost economic and social development, we must work together wholeheartedly across all fronts. As the saying goes, "Many hands make light work." The public-owned and non-public-owned economic sectors should complement each other and enhance one another, rather than exclude or neutralize each other.

China’s non-public sector economy has grown from small to large and evolved from weak to strong under the guidance of our Party and state’s policies. Over the long term, China’s non-public sector economy has experienced rapid development and has played a vital role in stabilizing growth, fostering innovation, boosting employment, and improving people’s livelihoods. The non-public sector economy serves as an important foundation for economic stability, a major source of national tax revenue, a key player in technological innovation, a crucial support for financial development, and a vital force driving the sustained and healthy development of the economy.

Of course, whether it’s the public sector economy or the non-public sector economy, both encounter certain contradictions and problems in their development, as well as facing various difficulties and challenges that require us all to work together to find solutions. However, we must not let one small detail obscure our vision of the bigger picture—focusing solely on one aspect while neglecting the rest. Any view that seeks to negate the public ownership economy or to negate the non-public ownership economy is inconsistent with the fundamental interests of the overwhelming majority of the people and is also incompatible with the requirements of our country’s reform and development; therefore, such views are all wrong.

II. Implement and enforce policies and measures to promote the healthy development of the non-public sector economy.

Since the reform and opening-up, the Party and the state have introduced a series of policies and measures to promote the development of the non-public sector economy. In particular, since the 18th National Congress of the Communist Party of China, as the comprehensive deepening of reform continues to advance, the policies and measures for the development of the non-public sector economy have become even more refined.

The Third, Fourth, and Fifth Plenary Sessions of the 18th Central Committee of the Communist Party of China have introduced a series of reform measures aimed at expanding market access for non-public enterprises and promoting their equal development. These measures primarily include: encouraging non-public enterprises to participate in the reform of state-owned enterprises; fostering the development of mixed-ownership enterprises controlled by non-public capital; allowing all types of market entities to enter, on an equal footing and in accordance with the law, sectors not listed on the negative list; permitting greater participation of state-owned economies and other forms of ownership in the development of mixed-ownership economies; allowing non-state-owned capital to take equity stakes in state-owned capital investment projects; permitting qualified private capital to legally initiate and establish small- and medium-sized banks and other financial institutions; allowing social capital to participate in the investment and operation of urban infrastructure through franchising and other mechanisms; encouraging social capital to invest in rural development; and permitting enterprises and social organizations to establish various undertakings in rural areas, among others.

To implement the spirit of the 18th National Congress of the Communist Party of China and the Third, Fourth, and Fifth Plenary Sessions of the 18th Central Committee, we have successively introduced a large number of relevant policies and measures. It can be said that we have now established a policy framework that encourages, supports, and guides the development of the non-public sector economy. As a result, the non-public sector economy is facing an unprecedentedly favorable policy environment and social atmosphere.

For various reasons, the supporting measures for these policies are still not fully implemented, and the actual effects of policy implementation remain less than satisfactory. The main problems include: continued high barriers to market entry; widespread persistence of “glass doors,” “spring doors,” and “revolving doors” in policy enforcement; persistently low efficiency in service delivery by some government departments for private enterprises; narrow financing channels for private enterprises—especially small and micro enterprises—and tight cash flow situations faced by private businesses, among others. Regarding the difficulties currently encountered, some private entrepreneurs describe them as being confronted with “three towering mountains”: an iceberg of market challenges, a high mountain of financing constraints, and a volcano of transformation pressures.

Although most of these issues stem from inadequate implementation and execution of policies, they nonetheless undermine the effectiveness of those policies and must be tackled with firm resolve. On the one hand, we need to refine our policies to enhance their substance and operational feasibility. On the other hand, we must step up efforts to ensure that these policies are fully implemented on the ground, leaving no room for half-hearted or distorted execution. The root cause of problems such as failure to implement policies or insufficient implementation lies in what is commonly referred to as the “last mile” challenge. As I’ve said before: “One part of planning accounts for only ten percent; ninety percent hinges on effective implementation.” All regions and departments must proceed from actual conditions, refine and quantify policy measures, develop complementary supporting initiatives, and ensure that all policies are thoroughly, meticulously, and effectively put into practice—so that private enterprises can truly feel the tangible benefits brought about by these policies.

Currently, the following issues need to be addressed effectively.

First, we must focus on addressing the financing difficulties faced by small and medium-sized enterprises (SMEs), improve and refine the financial system, and provide SMEs with reliable, efficient, and convenient financing services.

Second, we must focus on easing market access restrictions. All industries and sectors not explicitly prohibited by laws and regulations should be encouraged to welcome private capital. Any sector that the Chinese government has already opened up—or committed to opening up—to foreign investment should also be opened up to domestic private capital.

Third, we must accelerate the development of the public service system, support the establishment of common technology service platforms geared toward private enterprises, and actively foster technology markets to provide technical support and specialized services for private enterprises’ independent innovation.

Fourth, we must focus on guiding private enterprises to leverage the property rights market to pool private capital, carry out cross-regional and cross-industry mergers and acquisitions, and foster a group of large enterprise conglomerates that stand out for their distinctive features and strong market competitiveness.

Fifth, we need to further streamline and simplify administrative approval procedures and fees related to the management of private investment, regulate the conduct of intermediary agencies and intermediaries, reduce the burden on enterprises, and lower their costs.

During the 13th Five-Year Plan period, a prominent feature of China’s economic development has been the transition to a “new normal.” The new normal presents both challenges and opportunities—how we perceive and grasp it is the key. If we have a clear understanding, manage it effectively, and act decisively, we can turn these challenges into opportunities. Private enterprises should harness their initiative and innovative spirit, correctly understand and actively adapt to the new normal, and strive for new achievements, new improvements, and new development under the new normal. For example, the implementation of the three major strategies—the Belt and Road Initiative, the coordinated development of the Beijing-Tianjin-Hebei region, and the development of the Yangtze River Economic Belt—has brought about many rare and significant opportunities. Private enterprises can fully engage in these initiatives, promoting the joint restructuring of equipment, technology, standards, and services, thereby achieving industrial optimization and upgrading. Another example is that the proposals for the 13th Five-Year Plan put forward... 50 A major initiative and 300 Multiple specific measures have also created significant opportunities for the development of the non-public sector economy.

China’s economic development boasts strong resilience, ample potential, and significant room for maneuver—advantages that are becoming increasingly evident. China remains the world’s best country for investment opportunities. The non-public sector economy and non-public-sector entrepreneurs now face an even broader space to showcase their talents, more abundant opportunities, and a brighter future, enabling them to achieve even greater accomplishments. Confidence is crucial. While China’s development may experience short-term fluctuations in certain areas, in the long run, the prevailing trend remains one of vigorous upward momentum. All non-public-sector entrepreneurs should accurately grasp the overall direction of China’s economic development, bolster their confidence in growth, enhance their own comprehensive qualities, refine their enterprise management systems, foster entrepreneurial spirit, unleash entrepreneurial talent, strengthen enterprises’ internal vitality and creativity, and drive continuous, higher-quality development.

III. Encourage the broad ranks of non-public-sector economic actors to become qualified builders of the cause of socialism with Chinese characteristics.