Why should China vigorously develop the private economy at this stage?

(1) The development of private economy is conducive to the diversification and clarity of enterprise property rights, and to the separation of government and enterprise, and the separation of ownership and management rights. (2) The operating mechanism of the private economy is closest to the market economy, and the laws of value, supply and demand and competition are fully reflected in the private economy, so the private economy has certain reference significance for the reform of the state-owned economy. (3) The development of private economy is conducive to increasing supply and improving people's living standards and quality of life. (4) Private economy is relatively dispersed and small in scale, which is easy to absorb labor and is conducive to increasing social employment. (5) Private economy helps to mobilize all kinds of enthusiasm. Because the ownership form and operating characteristics of the means of production are different from the traditional economic form, the enthusiasm of owners, operators and workers can be fully mobilized. (6) In the process of the development of private economy, we have trained and brought up management talents who can adapt to the operation of market economy. Of course, the private economy also has some negative effects. In the case that the management mode and legal norms of the healthy development of private economy are not perfect, it is even more necessary to give full play to the positive role of private economy, overcome and avoid its negative effects, create a good operating environment for the healthy development of private economy, and give full play to the role of private economy in the socialist market economy.