China’s third plenum vows to support ‘capable’ private sector to lead tech innovation

Support for China’s private sector was discussed at the third plenum, which also vowed to make the state sector ‘stronger, better and bigger’

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Members of the Politburo Standing Committee attend the third plenary session of the 20th Communist Party of China Central Committee in Beijing. Photo: AP

Published: 11:00pm, 22 Jul 2024

In its quest to break out of tightening containment efforts by the United States, Beijing has vowed to give more room and better resources to the private sector to help China achieve technological breakthroughs.

It was one of the measures announced to support the private sector included in the 22,000-word resolution document unveiled on Sunday following the conclusion of the third plenum last week.

“[It is necessary] to support capable private enterprises to take the lead in undertaking major national technological research tasks, and further open up major national scientific research infrastructure to private firms,” said the decisions endorsed by the Communist Party’s 20th Central Committee.

The document also covered a wide range of reform objectives for the next five years in areas including economic development, science and technology, human capital, defence, social security and ideology.

And while the endorsement for the private sector is barely new – similar ones were made in government documents last year or even earlier – the reiteration highlighted the importance Beijing has placed on boosting sentiment among the key sector, while also upholding national security, analysts said.

It seems to focus on how to unite private enterprises to shoulder national strategic tasks

Su Yue, Economist Intelligence Unit

“It seems to focus on how to unite private enterprises to shoulder national strategic tasks,” said Su Yue, principal economist for China at the Economist Intelligence Unit.