Amendment adds new vigour

China's private sector received a significant shot in the arm in March, as the country's top legislature endorsed an amendment to the Constitution stipulating, for the first time, that citizens' lawful private property is inviolable.

The amendments were adopted with an overwhelming 2,863 votes in favour, 10 against and 17 abstentions at the closing meeting of the Second Session of the 10th National People's Congress (NPC) in Beijing.

The 1982 Constitution was previously amended in 1988, 1993 and 1999, underscoring the growth and development of the private economy.

The amendment also put an end to the year-long debate whether private property should be given equal footing with public property.

Some people argued that enshrining private property will only benefit rich private entrepreneurs. They worried that the amendment might help legalize unlawfully-obtained possessions.

They added that many are getting rich illegally, through tax evasion, bribery and the production of inferior products.

However, some economists and scholars believe the amendment is timely and is geared to the current economic situation in China, and that it will benefit every citizen.

By the end of November 2003, the number of China's private enterprises stood at 2.97 million, with a registered capital of more than 334.7 billion yuan (US$40.5 billion). The private sector, as a whole, contributes to half of China's national economic growth.

And private companies are responsible for more than 95 per cent of the country's employment.

Scholars say the Constitution will stand by the private property of every citizen, regardless of their economic status.

And individuals will also benefit from the amendment, which gives them an umbrella to claim compensation when they find their private property is trespassed upon.

Under the amendment, the country, for the public interest, may expropriate or requisition private property but must pay compensation.

China's millions of private entrepreneurs breathed a sigh of relief and praised the change to the Constitution, saying it will add new vigour to the expansion of their businesses and further contribute to the country's economy.

"We will never feel discriminated against," Xia Chaojia, a Sichuan NPC deputy and director of the large private firm Jiahe Group, told China Daily during the NPC annual meeting in March. "Now we can fully focus on our business instead of worrying about our social status."

Source: China Daily