Collective businesses played a crucial role in China's light industry, said a conference of China's handicraft industry cooperation Monday.

Traditionally, collective business mainly focused on processing industry and production of small commodities. Currently, more forms of trade have been added to collective businesses after reform and restructuring of collective businesses, sources said.

In 2003, there were 9,869 collective companies and joint-stock companies with an annual sale more than 5 million yuan (603,000 US dollars) each, accounting for 16.6 percent of the total number of light industry companies in the country.

These companies reported a total sale of 373.3 billion yuan and reaped profits of 15.8 billion yuan in 2003, making up 13.4 percent and 12.6 percent of the total light industry, respectively.

"Collective businesses are inseparable part of national economy and significant to consolidating China's basic economic system," said Chen Shineng, director of China's handicraft industry cooperation.