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As China is transforming from a planned economy a market‐oriented economy, private enterprise plays a prominent role in China's economy today. This paper introduces the status of private enterprise and focuses on its records management. By explaining the changes in China's policy towards the private sector, it deals mainly with practice in both archive administration and the records management of private companies. Government archives administration changed along with national policy from serving only the public sector to serving both public and private sectors evenly. For the private sector, archival consciousness is the key element in its fledging stage of records management. The paper also analyzes the characteristics of private companies that are different from state‐owned ones and the advantages and disadvantages of records management, and predicts some aspects of its development.

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