Private Economy Drives up East China's Growth

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Last updated at: (Beijing Time) Sunday, December 29, 2002

Private Economy Drives up East China's Growth

East China's economic powerhouse Jiangsu Province has seen a surge in the private economy as its number of domestic private enterprises tops the whole nation.

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East China's economic powerhouse Jiangsu Province has seen a surge in the private economy as its number of domestic private enterprises tops the whole nation.

According to statistics gathered by the provincial Administration for Industry and Commerce, the 284,000 private enterprises boasted a total registered capital of 203.6 billion yuan (24.5 billion US dollars) by the end of November, only next to prosperous southern Guangdong Province.

Jiangsu was known for its township enterprises in the 1990s butits non-public sectors failed to boom as they did in southern counterparts of Guangdong and Zhejiang.

The provincial government altered its guidelines at the end of 2000 and shifted to encourage the private economy.

The strategy has proven successful as official data show the private economy has soon caught up and become the new driving force of the region's new growth along with the increasing foreigninvestment.

This year, more than 60,000 new domestic private enterprises appeared and the investment from this sector increased by 45 percent and accounts for 20 percent of the total investment. Tax from these domestic private enterprises accounts for one-eighth ofJiangsu's revenue.

Jiangsu's GDP this year is expected to exceed one trillion yuan(120 billion US dollars), more than one quarter of which is contributed by the private economy.

These domestic private enterprises also participate in foreign trade and since this April, export from these enterprises has keptrising at three digit growth.

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