7 key things about China's new plan for private sector growth and financial strength

Beijing has unveiled the Communist Party’s Central Committee proposal for China’s upcoming 15th five-year plan, outlining fresh commitments to support the private sector and accelerate the country’s rise as a global financial power.

According to a South China Morning Post report, the announcement, which offers clearer assurances to private enterprises about their role in the economy over the next five years, has helped ease market concerns about policy direction.

Notably, the new pledges were absent from the communique issued last week following the fourth plenum of the Communist Party.

Here’s a look at key points from the new plan:

• Private Economy Promotion Law: The plan calls for the implementation of a new law to guarantee equal access to resources, fair competition, and legal protection for private firms — a move aimed at ensuring a level playing field with state-owned enterprises.

• Boosting business vitality: Authorities vowed to “fully stimulate” the dynamism of all types of enterprises and encourage the joint development of multiple ownership models, from state-led to privately held.

• Fairer enforcement practices: The proposal emphasises building a “sound and standardised” enforcement mechanism, warning against unlawful or profit-driven actions by regional regulators that harm businesses.

• Private capital in infrastructure: The government plans to expand private investment in major infrastructure projects, guided by public funds, to increase effective investment and economic momentum.

• Financial system reform and risk control: Beijing aims to modernise and strengthen financial regulation, improve coordination between central and local authorities, and establish a risk-prevention and resolution system to safeguard financial stability.

• Yuan internationalisation and financial opening: The plan promotes the yuan’s global use, with a focus on developing a self-reliant cross-border payment system and increasing foreign capital access to domestic projects.

• Building a strong financial nation: China will accelerate efforts to develop Shanghai as an international financial centre, and promote science and technology finance, green finance, inclusive finance, pension finance, and digital finance as pillars of its next growth phase.