According to the Ministry of Industry and Information Technology, as of the end of September last year, China had over 55 million registered private companies, accounting for 92.3 percent of all businesses. They contribute more than half of the country's tax revenue, over 60 percent of GDP and over 80 percent of urban employment.

Notably, they have increasingly become a key pillar of China's innovation ecosystem, contributing to over 70 percent of the nation's technological breakthroughs and making up more than 90 percent of national high-tech businesses.

With the two sessions underway, industry experts believe that fostering a business-friendly environment and creating more opportunities for the private sector will be a key spotlight.

A draft law on promoting the private sector, for instance, will be submitted to Chinese legislators for further review.

Liu Junhai, a professor and head of commercial law at the Renmin University of China in Beijing, said: "The private sector itself is a symbol of advanced productivity, and encouraging the development of the private sector will inject new productivity into economic growth in a timely manner.

"The new law on driving the private sector will be a focus of this year's two sessions. More detailed policies in treating State-owned enterprises and private enterprises equally from an institutional and legal perspective are expected," he said.

Liu added that promoting the nation's private sector should drive the equal status, common development, fair competition, mutual cooperation, equal supervision and equal protection for private enterprises, so that they can participate in market competition openly, fairly and justly.