China in Bid to End Illegal Fining of Rural Firms: Report

BEIJING, August 10 (Xinhua) -- The Ministry of Agriculture has called for the lifting of illegal fines and arbitrary quotas which are hampering the sustained growth of China's township enterprises.

Township industry, a major contributor to the country's economic growth, has endured unfair fines as well as a sluggish market and difficulties in obtaining bank loans, the ministry was quoted by Tuesday's China Daily as saying.

"Illegal fines, arbitrary quotas and other unreasonable measures imposed on township and village enterprises have been on the rise this year," said Jiang Yongtao, director of the Township Enterprises Bureau of the ministry.

In the wake of the nationwide campaigns to ease the financial burdens on farmers, many local governments have shifted the unjustifiable charges borne by farmers to township firms instead, Jiang said.

Moreover, many small and medium-sized township enterprises are plagued by acute fund shortages, as banks are reluctant to lend them money and funding from government sources is dwindling, he added.

Developing township enterprises has been slated as a key strategy and a long-term, fundamental policy by the government. Officials believe they will contribute to the flourishing rural economy and to boosting overall economic growth, the newspaper said.

Township and village businesses grew 17.3 percent last year, contributing about three percentage points to the country's 7.8 percent gross domestic product growth.