China’s Henan urges local entrepreneurs to ‘dare to invest’ amid slowdown

The central province has vowed to ‘protect’ and ‘listen to’ the private sector, as China’s leaders strive to restore confidence and shore up economic growth

Reading Time:2 minutes

Employees work at a lighter parts factory in Shangqiu, Henan Province. The region in central China has launched a campaign to shore up confidence in the private sector amid a period of economic uncertainty. Photo: Xinhua

Published: 5:20pm, 3 Feb 2025

China’s Henan province – one of the country’s largest manufacturing hubs – has issued a plea for entrepreneurs to “dare to invest” in the region, as China’s leaders strive to shore up confidence in the country’s jittery private sector.

Senior officials in Henan, China’s most populous province and its sixth-largest regional economy, invited local business leaders for a Lunar New Year lunch on Sunday as part of a government charm offensive.

Wang Kai, governor of Henan province, urged the assembled entrepreneurs to “dare to venture, dare to invest” during the meal, and vowed that local officials would support the private sector by providing the “best services”, according to local media.

“We will continue to improve policies, protect your legitimate rights and interests, and listen to your needs to create a first-class business environment,” Wang said.

The move is the latest attempt by Chinese authorities to reassure the business community amid a period of economic uncertainty and reports of arbitrary law enforcement that have shaken confidence in the private sector.

Though China’s met its economic growth target of 5 per cent in 2024, private sector investment fell by 0.1 per cent – a marked contrast with a 3.2 per cent increase in overall investment recorded that year.

The weak private investment figures were a concern for China given the private sector accounts for half of the government’s tax income, 60 per cent of national economic output and 80 per cent of urban jobs.