Abstract：Since the reform and opening up, China’s private economy has experienced five stages: germination，exploration，rapid development，adjustment and transformation，and quality improvement. It has developed into an important part of the socialist market economy and plays an important role in stimulating market vitality，stimulating economic growth and increasing employment. Looking back on the development process of the past forty years, the private economy has achieved remarkable results in terms of broadening of business areas, improvement of business freedom, enhancement of innovation drive, optimization of industrial structure and enhancement of international competitiveness. Looking into the future，we still need to accelerate the establishment of market access system to further broaden market access, further optimize the business environment of private enterprises, strengthen the guidance and support for private enterprises, and promote the private economy to accelerate industrial transformation and upgrading and technological innovation so as to promote a longer.term, healthy development of the private economy.

Key Words:Private Economy; Development History; Development Effectiveness