New measures to support city's private sector

Shanghai has released 26 new measures to support the high-quality development of private sector, aiming at addressing their most urgent needs by improving government services.

At a Thursday press conference, Shanghai Executive Vice Mayor Wu Wei said the measures cover six main areas – improving the business environment, expanding financial support, addressing late payments, protecting legal rights of private companies and business owners, supporting innovation, and strengthening government assistance.

Under the new policies, private companies will have more opportunities to participate in transportation, energy, and government-subsidized rental housing projects.

The measures also support companies working on green energy and environmental projects. Businesses are also encouraged to get involved in emerging industries that are strategic for the city's development.

The new measures would create more funding options for private enterprises. Companies will receive support for mergers and acquisitions, particularly in projects that develop new technologies or upgrade traditional industries.

Government investment funds will also be encouraged to invest in privately-run projects.

These changes aim to make it easier for private businesses to operate and grow in Shanghai, while creating a more supportive business environment.

Private companies play a major role in the city's economy, according to director Gu Jun of the Shanghai Development and Reform Commission.

In 2024, these companies created 75 percent of new employment in the city, and also made up 30 percent of the city's industrial output and fixed investments, while contributing 40 percent of the city's tax revenue.

Gu also noted that private enterprises make up 80 percent of the specialized, high-end and innovation-driven SMEs that provide distinctive products or services in the city.

The latest action plan comes after President Xi Jinping pledged to unswervingly encourage, support and guide the development of the non-public sector earlier this year.

At national level, several key measures have been unveiled to boost the private sector, including the establishment of the private economy development bureau of the National Development and Reform Commission, and legislative progress on a law to promote the private economy.