The private sector is playing a key role in stabilizing economic recovery, generating jobs and promoting innovation in China, and more efforts are needed to address challenges and difficulties faced by private firms and support the development of the private sector, said a political adviser.

Qi Xiangdong, a member of the 14th National Committee of the Chinese People's Political Consultative Conference, brought his suggestions on five issues during the two sessions, with three of them aimed at supporting the healthy and high-quality growth of private enterprises.

"Private enterprises are not only the most active participants in the market, but also an important force in boosting technological innovation," said Qi, who is also chairman of Chinese cybersecurity company Qi-Anxin Technology Group and vice-chairman of the All-China Federation of Industry and Commerce.

In his proposals, Qi stressed the need to improve the business environment for key private firms, especially those focusing on technological innovation and gaining a key edge in niche markets, saying they still face issues critical to their development, including financing difficulties.

Qi recommended that regulatory restrictions on financing for listed companies should be further relaxed, steps should be taken to pose restrictions on low-priced winning bids of high-tech products and services and bidding prices for scientific and technological projects should not be lower than the cost prices.

Guidelines for procurement should also be introduced to purchase enterprise services based on market labor costs to boost the confidence of private high-tech enterprises in their development.

Noting that it is the responsibility of sci-tech workers and entrepreneurs to tackle challenges and problems in core technological research that hinder the country's development, Qi proposed to adjust accounting standards to fully unleash the potential of small and medium-sized enterprises to innovate.

When it comes to the development of specialized and sophisticated SMEs, Qi highlighted their key role in boosting technological innovation and strengthening industrial chains, recommending further postponing principal and interest repayments on their loans, establishing special investment funds and increasing support for such SMEs.

Official data showed that China's private firms, mostly SMEs, contribute more than 50 percent of the country's tax revenue, 60 percent of gross domestic product, 70 percent of technological innovation, 80 percent of urban employment and 90 percent of market entities.

China is taking solid steps to promote the high-quality development of SMEs, including optimizing the business environment and further implementing policies on easing SMEs' burdens, giving priority to supporting the development of the private sector and boosting market confidence.

In 2022, the number of SMEs and micro businesses surpassed 52 million and industrial SMEs with annual revenue of at least 20 million yuan ($2.89 million) from their main operations posted their combined operating revenues of more than 80 trillion yuan last year, data from the Ministry of Industry and Information Technology showed.

The country's top leadership reaffirmed the nation's unwavering support for the private sector, pledging steps to bolster confidence among private businesses and entrepreneurs, reduce their burdens and promote their healthy and high-quality growth, during the recently concluded two sessions.

Qi spoke highly of the country's solid steps to create a better business environment by continuously reducing taxes and fees and easing burdens on enterprises, saying that they significantly boosted the confidence of private firms.

Given China's huge domestic market, well-developed production system and innovation capabilities, Qi said this leaves plenty of room for the private sector's future development and rising opportunities.

In his proposals, he also emphasized the importance of enhancing China's cybersecurity capabilities, saying more efforts should be made to defend against risks in the digital age.