To boost the private economy, the Beijing authorities started rolling out a series of preferential measures in July of last year. These include "31 Policies to Promote the Development of the Private Economy" and "25 Policies to Support the Private Economy." Additionally, on December 28th, they passed the latest revised "Company Law of the People's Republic of China," which takes effect on July 1st 2024. This revision is considered the biggest "economic reform" by the Chinese Communist Party since the initiation of "Reform and Opening Up."
In other words, medium to large-scale private enterprises in mainland China, typically defined as those with over 100 employees and total assets exceeding 80 million yuan, will find it exceedingly difficult to survive independently starting from this July. Their only viable option for survival is to seek affiliation with state-owned enterprises, a process known as "mixed-ownership reform.” State-owned enterprises can take controlling stakes or at least invest in them. Essentially, it's like finding a "Sugar Daddy." However, deep down, they feel unwilling and resentful because nearly all previous cases of mixed-ownership reform have ended in failure.

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