The latest data from the Federation of Commerce and Industry of China shows that China's private enterprises are scaling up.

3 million 5.5 thousand private funded businesses were registered in 2003, 570.2 more than the previous year, making 2003 the year of the fastest increase since the registration system was in place.

Their registered capital recorded at 3530.5 billion yuan, up 42.61 percent while employment in this sector reached 429.9 million, 8.9 million more than the previous years.

By the end of 2003, according to the record, 23.5319 million private-owned companies had been running under registered capital of 41869.9 billion yuan, rising 40.464 billion yuan over the previous year.

The survey by the Federation of Commerce and Industry confirmed that businesses founded by private investors are contributing more to the society and generating hefty economic and social benefits.

In fact, 99 percent enterprises in China are in small and medium size with most of them funded by private investment.

Chinese small and medium sized enterprises create 55.6 percent of the country��s GDP, 74.7 percent of added value of industrial production, 58.9 percent of social sales, 46.2 percent of tax revenue and 62.3 percent of exports. Besides that, they offer more than 75 percent of jobs, claim about 65 percent of patents, make more than 75 percent of technical innovations, and develop more than 80 percent of new products.

More than 1,500 new members join the private sector every day in China on average. They bring 3 billion yuan registered capital on a daily basis. A population of 32 million are private labor force. One out of 40 persons are self-employed. The number of companies funded by about 7.72 million private investors have exceeded 3 million. About 1 trillion yuan was added as equity in 2003. Experts expect that China's private economy will attract 30 million to 40 million investors by 2010.

The private sector also absorbs most labor force in the country.

By the end of 2003, more than 80 million workers, or one-third of the total employment in urban and town areas, had been working for self-employed and private businesses which were creating 6 million new jobs, or 80 percent of the total new opportunities, every year.

In addition, 65 percent of laid-off workers from state-owned enterprises went to the private economy. In 2003, private enterprises accepted nearly 1.1 million laid-off workers from SOEs. Among them, 100,000 founded their own businesses. 966,000 went to self-employed sector. 471,000 laid-off workers among them became investors of start-ups.

By the end of 2003, non-public township enterprises had 136 million positions available which absorbed enormous surplus labor force in rural areas. They have made outstanding contribution to the process of industrialization and urbanization of the country.

By People's Daily Online