Abstract: The development of the private economy in China constitutes a pivotal component and essential element in the theoretical and practical exploration of the basic economic system of socialism with Chinese characteristics, particularly in the advancement of the socialist market economy. As China enters a new historical juncture of development, there is an increasingly urgent imperative to apply the new development philosophy, foster a new development paradigm, and achieve high-quality development-which in turn imposes profound historical requirements for building a high-standard socialist market economy. The private economy now confronts both new historic opportunities and challenges, alongside a series of emerging developmental and institutional contradictions. These issues demand in-depth discussions from a fundamental theoretical perspective. Guided by General Secretary Xi Jinping's discourses on the private economy, this paper analyzes the evolution and drivers of private economic development, identifies the key issues and requirements for its further growth, and explores core theoretical questions:the inherent unity and competitive equality between the private economy and the socialist market economy; the objectivity of private enterprise development and the particularity of their governance structures; and the historical rationality and legality of private capital's participation in income distribution based on production factors.