The Number Of Private Economic Organizations in China Has Reached 185 Million, And The Vitality Of Market Entities Continues To Increase

The total number of private economic organizations has steadily increased, becoming an important pillar of the national economy. The latest data released by the State Administration for Market Regulation on June 27th shows that as of the end of May 2025, there were 185 million private economic organizations in China, accounting for 96.76% of the total number of operating entities, a year-on-year increase of 2.3%. In the pattern of collaborative efforts among multiple entities, private enterprises and individual businesses have become the "dual engines" driving the steady progress of the private economy.
As of the end of May, the number of private enterprises exceeded 58 million, a year-on-year increase of 5.2%. Private enterprises are continuously increasing their investment in technological innovation and making sustained efforts in strategic emerging industries such as new energy and high-end equipment manufacturing, becoming an important support for promoting industrial upgrading and stabilizing economic growth. The number of individual industrial and commercial households has reached 127 million, a year-on-year increase of 1.0%. In the fields of community retail, catering services, and home maintenance, individual businesses meet the diverse needs of residents with flexible and diverse business models.

Private enterprises focus on 'new quality productivity'
As an inherent element of China's economic system, the private economy has always been an important force in promoting the development of the socialist market economy. In recent years, the status of the private economy has been continuously elevated and its role has become increasingly prominent. 185 million private economic organizations constitute the most extensive market foundation of the Chinese economy, with 96.76% of them demonstrating the absolute dominant position of the private economy in the market.
From a classification perspective, private enterprises and individual businesses constitute a "dual wheel drive" pattern of the private economy. As of the end of May, the number of private enterprises exceeded 58 million, a year-on-year increase of 5.2%; The number of individual industrial and commercial households reached 127 million, a year-on-year increase of 1.0%. These two types of entities each showcase their strengths and form a pattern of complementary development.
As the "leader" of the private economy, private enterprises play an irreplaceable role in promoting industrial upgrading and stabilizing economic growth. In recent years, private enterprises have continuously increased their investment in scientific and technological innovation, and have been making sustained efforts in strategic emerging industries such as new energy, high-end equipment manufacturing, and biomedicine. Taking the photovoltaic industry as an example, private enterprises account for over 80% of the global supply of photovoltaic modules; In the field of new energy vehicles, the sales proportion of private car companies has exceeded 70%; Private enterprises are also at the forefront of cutting-edge technologies such as artificial intelligence and big data.
A group of globally competitive private technology companies such as Huawei, Tencent, and BYD have emerged as shining business cards for China's high-quality economic development. In 2024, Huawei's research and development expenses amounted to 179.7 billion yuan, accounting for approximately 20.8% of the annual revenue. Over the past decade, Huawei has invested more than 1249 billion yuan in research and development expenses. As of the end of 2024, Huawei holds over 150000 valid authorized patents worldwide.
BYD has achieved full industry chain autonomy and controllability of core technologies such as batteries, motors, and electronic control in the field of new energy vehicles. In 2024, BYD's annual sales exceeded 4.27 million vehicles, including over 4.25 million new energy passenger vehicles, a year-on-year increase of 41.1%. Pure electric sales reached 1.765 million units, accounting for 41.5%, and plug-in hybrid sales reached 2.4854 million units, accounting for 58.5%. At the same time, BYD has also won the sales champion and brand sales champion in the Chinese automobile market, as well as the sales champion in the global new energy vehicle market.

Small and medium-sized enterprises have also made breakthroughs in the field of specialization. At the 2025 Shanghai International Auto Show, Black Sesame Intelligent released the all-new Huashan A2000 series chip, showcasing Wuhan Intelligent Manufacturing's edge on the world's top stage. This chip not only empowers assisted driving, but also equips robots with brains. The Pro version's computing power can even surpass four popular flagship chips in the industry, making a strong impact on the forefront of "embodied intelligence".
The report released by the All China Federation of Industry and Commerce shows that private enterprises contribute more than 70% of the country's technological innovation achievements, and more than 80% of specialized, refined, and new "little giant" enterprises come from the private economy. Private enterprises are transitioning from traditional labor-intensive to technology intensive and knowledge intensive, with increasingly evident characteristics of innovation driven development.
Private enterprises, especially small and medium-sized enterprises, have the characteristics of flexible mechanisms and high market sensitivity, which can quickly capture changes in market demand and transform technological innovation achievements into real productivity. Against the backdrop of building a new development pattern, the innovative vitality of private enterprises will be further unleashed.
Individual businesses build a strong grassroots' fireworks atmosphere '
On the other hand, individual businesses scattered throughout the streets and alleys have injected vitality into the community economy. The latest data released by the State Administration for Market Regulation shows that as of the end of May 2025, the number of individual industrial and commercial households in China reached 127 million, a year-on-year increase of 1.0%. Although the growth rate is slightly lower than that of private enterprises, their role in stabilizing employment, ensuring people's livelihoods, and promoting consumption cannot be underestimated.
As the market entities closest to people's lives, individual businesses are widely active in areas closely related to people's livelihoods, such as community retail, catering services, home maintenance, convenient medical care, and preschool education. They maintain the "human touch" and "fireworks atmosphere" of the city through flexible and diverse business models, low-cost service forms, and thoughtful customer experience.
In the field of community retail, individual businesses are accelerating their pace of transformation and upgrading. More and more small shops and stalls are actively embracing digital tools, such as accessing online platforms, offering food delivery services, and using mobile payments, to achieve integrated online and offline operations, effectively expanding customer groups, and improving business efficiency.
The domestic service and maintenance industries are also thriving. Many individual practitioners are constantly improving their skills training and service standardization, and have won the trust of more and more residents through word-of-mouth communication and platform certification. In the daily operation of cities, individual industrial and commercial households have become the "basic unit" for maintaining living order.

It is worth noting that individual businesses are also an important channel for employment. On average, each individual industrial and commercial household drives more than 2 people to work. Converted, individual industrial and commercial households across the country directly or indirectly provide over 250 million job opportunities for society, playing a significant role in stabilizing the employment market.
The sustained release of policy dividends has injected new momentum into the development of individual businesses. Since the beginning of this year, various regions have successively introduced policies and measures such as classifying and cultivating individual industrial and commercial households, reducing taxes and fees, and providing financial support to help individual industrial and commercial households develop healthily. At the same time, we will promote the transformation of neighborhoods, establish night markets, and create characteristic neighborhoods, guiding individual businesses to participate in regional economic revitalization and integrated development of culture and tourism.