WEI Chu: Empowering the High-quality Development of Private Sector with New Productivity

The Xinhuanet’s Thinker Annual Conference, themed “Shaping New Dynamics, Unleashing New Vitality”, was held on October 10 at Yunqiushan in Linfen City, Shanxi Province. At the conference, Wei Chu, Dean and Professor of the School of Applied Economics and a researcher at the National Academy of Development and Strategy at Renmin University of China, emphasized that accelerating the formation of new productive forces requires the reform and improvement of market institutions, as well as the establishment of an innovation system. In this process, the private sector, as an important foundation for high-quality development, plays a crucial role in nurturing new productive forces.

Currently, private enterprises have become a key player in technological innovation, contributing more than 50% of R&D investment and personnel, over 70% of technological innovation achievements, more than 80% of “little giants” in specialized, refined, unique, and innovative enterprises, and over 90% of high-tech enterprises.

How should we view the relationship between the high-quality development of the private sector and the cultivation of new productive forces? Wei Chu believes that the private sector is highly innovative, flexible, and responsive to market changes, which aligns closely with the inherent requirements for the development of new productive forces.

Wei Chu further explained that, first, technological breakthroughs provide the private sector with greater new momentum. Private enterprises not only have a strong willingness to innovate but also possess robust innovation vitality, creating a good coupling and interaction with technological breakthroughs. Second, the private economy's high flexibility facilitates the innovative allocation of production factors. Its flexible corporate governance systems also help in the efficient flow of talent and capital. Third, the deep transformation of industries equips the private sector with the ability to expand into new fields. More and more private enterprises are quickly responding to market changes and actively exploring new paths, thereby developing new productive forces.

(Translated by ZHANG Yuqing; Proofread by YANG Fanxin)