Global Context for Chinese Private Enterprises

Given the significant role of private enterprise in national economic development, this chapter highlights the substantial challenges posed by the international environment. For example, since the Trump administration imposed additional tariffs on Chinese goods in 2018, the trade war between China and the United States has negatively impacted many private enterprises, particularly those that rely heavily on exports to the United States. Moreover, Western developed countries dominate high-tech fields and high-end manufacturing, with many products having few substitutes and strong international competitiveness, making it difficult for Chinese private enterprises to surpass them in the short term. As a result, most Chinese private enterprises struggle to enter the high-value end of the global value chain. Therefore, it is crucial to create a more favorable international environment to support the growth of Chinese private enterprises.