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Private enterprises are an important source of innovation and entrepreneurial dynamism, which will further invigorate China’s economic vitality and drive higher-quality growth, said David Blair, vice president and senior economist at the Center for China and Globalization (CCG) in an exclusive interview with Guangming Online.

According to Blair, domestic demand and consumption are becoming a major driving force for China’s economic growth. Against the backdrop, entrepreneurship and innovation can play a key role in promoting employment and increasing income, so as to further boost consumption.

Blair pointed out that in China, the private sector is an important player in entrepreneurship and innovation. Apart from promoting technological innovation, private entrepreneurs also seek to explore new markets and produce new products based on their imagination and judgement of market prospects. They are even good at identifying new production modes and new resources, hence unleashing the drive for sustained economic growth.

The development of private enterprises hinges on a favorable market environment, he said, adding that the Chinese government has taken a series of measures to empower small and micro enterprises in recent years, such as improving legal protection for the private sectors and reducing their tax burdens through tax reform.

“It's very hard to develop a dynamic spirit, and it's very easy to kill it. I think that China is doing a lot of the right stuff”, said Blair. He noted that it is the spirit of innovation that will transform China into a more dynamic, innovative and more affluent economy in the future, and that China is committed to achieving this goal.