Guangdong Establishes Bureau of Private Economy to Boost Innovation and Growth
The Guangdong province has officially established a Bureau of Private Economy, a move that is expected to inject new momentum into the development of the private sector. This decision was announced during the 2025 Guangdong High-Quality Development Conference press conference on February 5. According to Ai Xuefeng, Director of the Guangdong Development and Reform Commission, the establishment of this bureau aims to provide stronger support to private enterprises, which are considered the main drivers of industrial development.
6 February 2025
The Guangdong government plans to fully support enterprises in taking the lead in innovation, promoting the "Shenzhen 6 '90%'" experience, which focuses on fostering indigenous innovation and concentrating research and development institutions, personnel, funding, and patents within enterprises. Additionally, the government will strengthen policy support for businesses, implementing a series of powerful policies such as the "10 measures for technological transformation," "10 measures for reducing manufacturing costs," and "15 measures for science and technology finance." These efforts aim to drive innovation resources towards high-quality enterprises and provide tangible benefits for their development.
The establishment of the Bureau of Private Economy in Guangdong follows the footsteps of the National Development and Reform Commission, which set up a similar bureau in September 2023 to promote the development of the private economy nationwide. The Guangdong government's move is seen as a significant step in supporting the growth of private enterprises in the province, which is expected to have a positive impact on the local economy. Ai Xuefeng emphasized that enterprises are the main drivers of industrial development and that the establishment of a modern industrial system cannot be achieved without their strong support and efforts.
The Guangdong government will also strengthen communication and exchange with enterprises, solve problems in a timely manner, and provide real benefits for enterprise development. This move is expected to inject new momentum into the development of the private economy in Guangdong. With this new development, Guangdong is poised to further enhance its business environment, foster innovation, and support the growth of private enterprises, which will be crucial for the province's high-quality development and its goal of building a modern industrial system.
The province will aggressively promote the "Shenzhen 6 '90%'" experience, which has proven successful in concentrating innovative resources in high-quality enterprises. This approach ensures that over 90% of innovative companies are homegrown, with a corresponding proportion of research and development institutions, personnel, funding, patents, and major technological projects focused on enterprise-led innovation. Furthermore, Guangdong will implement a range of effective policies to support businesses, including the "10 Measures for Technological Upgrades," "10 Measures to Reduce Costs in Manufacturing," and "15 Measures for Science and Technology Finance."
The establishment of the Bureau of Private Economy is a significant move that can help address the development challenges faced by private enterprises in the province. By providing support and resources to these companies, the bureau aims to foster a more favorable business environment, which can, in turn, boost economic growth and attract more businesses to the region. However, there are also concerns that excessive control and oversight could stifle innovation and hinder the growth of private enterprises. As such, it is crucial for the bureau to strike a delicate balance between providing support and exercising regulatory oversight, ensuring that private businesses can thrive while also maintaining fair competition and adhering to relevant laws and regulations.
This development is particularly noteworthy given the critical role that private enterprises play in driving economic growth and job creation in Guangdong. By catering to the needs of these businesses, the province can leverage their potential to fuel innovation, enhance competitiveness, and contribute to the overall prosperity of the region. Nevertheless, the success of the Guangdong Private Economy Bureau will ultimately depend on its ability to navigate the complex relationship between supporting private enterprises and maintaining effective regulatory frameworks, thereby promoting sustainable and equitable development in the province.
