China's privately-run small and medium-sized enterprises (SMEs) have entered a period of fast growth. From 2000 to 2004, the nation saw 44,989 newly emerged such firms, or 34.8 percent of all enterprises surveyed. The country's non-state-run economy is displaying a stronger and stronger growth momentum.

By the year 2010, non-state-run SMEs may generate 40 percent GDP in industrial field, and reach an employment level over 60 percent. Viewing from the developing trend, China will form an ownership and enterprise scale structure with large state-owned-enterprises taking the lead and non-state-run SMEs forming the main body, thus creating a permanent driving force for sustained, fast economic growth of China.

A research targeting 129,299 privately-run manufacturing enterprises in 2003 showed that between 2000 and 2004, China's privately-run SMEs grew 108.28 percent, 65.65 percent and 103.97 percent in terms of sales, profits and total assets respectively on a ten-year base. Statistics showed that the fast enhancement of overall strength of China's privately-run firms is playing an increasingly important role in pushing forward national economy and lifting the comprehensive national strength.

From a geographical perspective, 77.31 percent enterprises of this kind gathered in the east and only 7.38 percent located in the west. The top ten provinces, cities and autonomous region of fastest such growth were Beijing, Inner Mongolia, Shanghai, Guangxi, Guangdong, Tianjin, Yunnan, Shandong, Shanxi and Ningxia.

The research is jointly conducted by China Enterprise Evaluation Association and China Economic Net, and is based on an evaluation system on growing SMEs jointly formulated by the State Development and Reform Commission, National Bureau of Statistics, State Administration for Industry & Commerce and All-China Federation of Industry & Commerce.

By People's Daily Online