China’s Reform and Opening-Up History and the Contribution of the Private Economy

Reading through it, reform and opening-up can be divided into two phases. The first phase began in 1984, though things were still relatively unstable. The second phase started in 1992, when the nation was firmly committed to building a market economy, with 1993 marking the official announcement of establishing a socialist market economy — which also breathed new life into the private sector.

A key takeaway from the 19th National Congress regarding the private economy was that it accounts for 80% of urban employment. In other words, employment in lower-tier cities largely depends entirely on private enterprises. The private sector also contributes 50% of tax revenue.

Here’s a brief story: Yu Minhong believes personal experience and perspective are crucial for entrepreneurship. When he and Jack Ma both went to the United States, Ma saw the potential of international internet-based e-commerce platforms, while Yu saw the possibility of applying for study abroad via email. He emphasized that the fundamental requirement for doing business is spotting opportunities within areas you understand deeply, and being willing to dive in and execute.

Regarding how to achieve equity in education (and healthcare), he proposed that policy-driven measures are needed, such as rotational assignments and cross-training among professionals.

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