China Renews Pledge to Embrace Private Sector as Private Investment Shrinks to 11-Year Low

Employees working on aluminum products at a factory in Huaibei, in China's eastern Anhui province, on Jan. 30, 2023 . China Out/STR/AFP via Getty Images

Beijing once again pledged to embrace its private sector amid record shrinkage in the country’s private fixed asset investments, one of the main drivers of China’s economic recovery in 2021.

China’s annual growth in private fixed asset investment has shrunk to 0.9 percent in 2022, the lowest in 11 years, despite Beijing’s renewed embrace of its private sector and issuance of supporting policies.