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Private sector drives Beijing's development
(Xinhua)
Updated: 2004-11-07 10:20

The private sector now produces 41.87 percent of Beijing's total GDP (gross domestic product), playing an increasingly important role in pushing forward local economic development, according to Beijing's Municipal Statistics Bureau.

The capital registered a GDP of 296.95 billion yuan (US$35.9 billion) in 2004's first three quarters, a year-on-year rise of 13 percent.

Private businesses employed 58.54 percent of Beijing's total working force at the end of June this year, about 6.6 million in urban areas.

There are nearly 696,000 private businesses in Beijing, according to statistics released recently by the Municipal Development and Reform Commission.

According to the commission, the private sector now contributes 52.6 percent of Beijing's total fixed asset investment and 43.13 percent of tax revenue.

Chinese private businesses still often face difficulties in obtaining access to the market, unequal taxation, difficulties in obtaining bank loans and lack of legal assistance services, all of which may hold back their further development.

Officials disclosed that the city is drafting regulations on promoting the healthy development of private businesses. The regulations will cover the promotion of fair competition, improving financial services for private businesses, standardizing operation and protecting the legitimate rights of private businesses and creating a sound environment for the development of the private sector.

According to the State Administration of Industry and Commerce, the number of private enterprises in China totaled 3 million by the end of last year, employing 40.88 million people and boasting a combined registered capital of 3.5 trillion yuan (US$423.2 billion). The figures are 33.3 times, 25 times and 416 times the respective figures for 1989.

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