In 1993, Liu Yonghao became a member of the Eighth National Committee of the Chinese People's Political Consultative Conference (CPPCC), China's top advisory body. In that year, as a representative of private entrepreneurs, he took the podium at the Great Hall of the People in Beijing for the first time, delivering a speech highlighting the promising future of the sector at the annual session of the committee.

Since then, Liu has attended the annual sessions of the National People's Congress (NPC), China's top legislature, and the CPPCC National Committee for 33 consecutive years, either as an NPC deputy or a CPPCC National Committee member, submitting a total of 208 proposals and suggestions. This year, at the age of 74 and now chairman of New Hope Group, one of China's largest agribusinesses, he once again made his appearance as a national political advisor at the Third Session of the 14th CPPCC National Committee, expressing unwavering confidence in the future of the private sector.

As one of the earliest private entrepreneurs to emerge after China's reform and opening up began in 1978, Liu began with poultry and pig breeding, gradually leading his company to become a diversified business group. At the same time, China has transformed from an underdeveloped economy to a market-oriented economic powerhouse, with its per-capita GDP surging from $156.4 in 1978 to more than $13,200 in 2024.

The development of China's private sector is also exceptional. In 1993, the combined annual sales revenue of private enterprises was just over 30 billion yuan (equivalent to $5.1 billion at the time), according to Liu. In 2023, the total operating revenue of the top 500 private enterprises in the country reached 41.91 trillion yuan ($5.7 trillion), with an average of 83.82 billion yuan ($11.5 billion) per enterprise.

"Decades have passed in the blink of an eye," Liu said to media on March 4,the day the Third Session of the 14th CPPCC National Committee opened. "Back then, people's incomes were relatively low and the overall economic output lagged far behind world leaders. Yet we have made it through to where we are now, which is precisely where our confidence originates from. I remain fully optimistic about our future." 

Impressive achievements 

The Chinese economy expanded 5 percent last year to 134.9 trillion yuan ($18.7 trillion) and contributed about 30 percent to global economic growth, according to the government work report delivered by Premier Li Qiang at the opening meeting of the Third Session of the 14th NPC on March 5.

China promoted growth within a reasonable range and effectively improved the quality of its economy, Huang Lianghao, an official with the Research Office of the State Council and also a member of the drafting group for the government work report, told Xinhua News Agency, highlighting a 3.4-percent reduction in carbon emissions per 10,000 yuan ($1,380) of GDP. Huang described the achievements as "hard-won and extraordinary."

In 2024, China unveiled a major local government debt replacement program worth 6 trillion yuan ($828.3 billion), with an annual quota of 2 trillion yuan ($276.1 billion) from the same year. The program allows local governments to issue new bonds to replace hidden debts. Hidden debts refer to off-the-books borrowings that local governments would be called on to repay.

Bonds issued through the program last year saw an average reduction in local debt interest rates of over 2.5 percentage points, Minister of Finance Lan Fo'an said at a press conference on March 6 on the sidelines of the Third Session of the 14th NPC.

It is estimated that these bonds will reduce interest payments by over 200 billion yuan ($27.6 billion) over five years, significantly easing funding pressures and interest costs for local governments, Lan added.

With eased debt burdens, local governments are capable of earmarking more funds for education and healthcare to improve people's wellbeing, and support technological innovation and consumption for high-quality development.

"When you look at the global economic environment, it is extremely challenging—especially with the widespread China-bashing and false narratives that mislead many people around the world about China. Despite this, we still achieved 5-percent growth," Vincent Lee Kwan-ho, a member of the 14th CPPCC National Committee and Chairman of Tung Tai Group in Hong Kong Special Administrative Region (SAR), told Beijing Review. 

Lee also emphasized the role of the SAR in contributing the national economy as an international financial center. "With its common law system, free flow of currencies and a diverse pool of professionals—including lawyers, accountants and investors—Hong Kong will continue to serve as a vital super-connector between China and the rest of the world," he said.

Challenging problems 

"While recognizing our achievements, we are keenly aware of the problems and challenges that confront us," Premier Li said.

Noting that 2025 is the final year for implementing the 14th Five-Year Plan (2021-25), Li said China targets economic growth of around 5 percent this year, the same as last year. China's five-year plans are blueprints for national economic and social development approved by the NPC and have been instrumental in pushing forward the country's evolution in all sectors since their inception in 1953.

Additionally, the government work report called for efforts to implement policies and measures designed to spur the growth of the private sector, and effectively protect the lawful rights and interests of private enterprises and entrepreneurs in accordance with the law.

"The rapid growth of China's economy is largely due to the substantial contributions of private enterprise and their efforts should be recognized by all," Liu added.

Last year, a total of 27.37 million new business entities, mostly private ones, were established in China, with an average of 24,000 registered at market regulation authorities per day.

Liu expressed concerns about how to turn the Central Government's policies on the private sector into legally binding assurances. "I believe the introduction of the promotion law will promote better development of private enterprises," he said. The law, which features equal treatment and protection of private businesses, is currently in the legislative process. If passed, it will be China's first foundational law specifically focused on the development of the private economy. 

Over the past seven years, Lee has been pushing the development of the low-attitude economy in the Guangdong-Hong Kong-Macao Greater Bay Area. In 2024, the low-altitude economy was included in the government work report for the first time. The 2025 government work report once again proposed promoting the safe and healthy development of emerging industries such as the low-altitude economy.

However, within the Greater Bay Area, Hong Kong and Macao SARs and Guangdong Province operate under different legal systems and regulations. "Unless these rules are synchronized, cross-border operations remain challenging. My proposal is to establish a regulatory sandbox to facilitate smoother integration and innovation," Lee said. A regulatory sandbox is a controlled environment where businesses can test new products or services under relaxed regulations and regulatory supervision. It helps innovation while allowing regulators to assess risks before full implementation.

"Despite these challenges, our electric vehicle industry and other sectors continue to thrive. That adds to the resilience the Chinese economy," Lee said, adding that in the coming year, he is quite optimistic because the message is clear—the government is firmly committed to propelling the economy and driving improvement across all sectors.  

(Print Edition Title: Looking Back and Looking Forward) 

Copyedited by G.P. Wilson 

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