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The number of private business entities in China reached approximately 1.81 trillion by the end of September, accounting for 96.37 percent of the country's total business entities and marking a more than fourfold increase over the past decade, the Xinhua News Agency reported on Wednesday.

According to data released by the State Administration for Market Regulation, China is now home to about 55.54 million private companies and over 1.25 trillion self-employed small businesses.

In China, many private business entities operate within the services sector, such as hospitality and catering, residential services and maintenance services, wholesale and retail, transport and warehousing.

The wholesale and retail businesses serve as a bridge connecting the manufacturing sector and vast consumers, and the significant presence of private entities in this sector highlights the vitality of China's market economy, according to the report.

Thanks to the country's policy support for new infrastructure projects, smart transport, and logistics management, the logistics sector has achieved a notable development, the report noted.

China has actively promoted private sector development and will continually strive to create a market-oriented, and law-based business environment.

The Ministry of Justice and the National Development and Reform Commission in October published a draft law on private sector development to solicit public opinion. The law is formulated in a bid to enhance the development environment for the private economy, ensure fair market competition for various types of economic entities, and support the sustainable growth of private businesses and entrepreneurs in China, according to the draft.

The draft is open for public comments until November 8.