Private economy is changing China, expert
(chinanews.cn)
Updated: 2006-08-30 14:42
At the third Chinese Entreprneurs Summit held in Shenzhen, Huang Mengfu, vice
chairman of the 10th National Committee of the Chinese People's Political
Consultative Conference (CPPCC) and chairman of the All-China Federation of
Industry and Commerce, said that private economy was changing China.
In his speech, Huang said that the reform and opening-up in China had brought
new ideas, new policies and new schemes to China. He noted that one driving
force for China's fast economic progress was the "trillion yuan of private
capital", which was taking root as Chinese Premier Wen Jiabao once said.
Huang said the trillion yuan of private capital was formed as a result of the
big changes taking place in people's ideas, concepts, and schemes. It also acted
as a force to push the ideas, concepts and schemes to change further. During
this changing process, the amount of private capital had grown from nothing to
the present 6 trillion yuan in only two decades.
In fact, private capital has brought tremendous changes to the nation's
economy and people's lives. Private companies have now become the largest
enterprise group in China, accounting for 60% of the total legal enterprises in
China. They contribute to 40% of China’s GDP, and 60% of the GDP growth. They
create job opportunities for most of the people in urban areas and the surplus
labor in rural areas, and for 80% of new non-agricultural employment in society.
They contribute to one-fifth of the national tax revenue, and most of the local
government tax revenue. They make up one-fifth of the country's export volume.
With the commodities and services they provide, they have become an important
force changing China's shortage economy, and improving Chinese people's living
standard fundamentally.
In light of this, we can say without exaggeration that private economy is one
of the most important forces changing China, said Huang.
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