Private Economic Proportion up to 62%

According to a report made on the development, restriction and outlook of Chinese private enterprises by professor Song Li from Peking University and a professor from Australian State University, Chinese government has been making a lot of improvements on the legislation to recognize the important role private enterprises play in the socialist market economy.

Output of private enterprises have exceeded that of the state owned enterprises for a consecutive four years, accounting for 62% of the country's total output, said the report. However, Chinese small and medium sized private enterprises still feel difficult to be granted loans by banks due to the fact that most of the bank's capital go to the ineffective state owned enterprises.

The report gave suggestions on balancing China's economy including improving financial and tax system, strengthening intellectual property rights, enhancing training expenditures on commercial law, accounting, settlement, business and public administration so that talents employed by private enterprises will be of better proficiency. (Panorama)

People's Daily Online --- http://english.peopledaily.com.cn/