A new survey shows that China's private companies have been keeping a great growth momentum, and are playing an important role in the country's economic and social development.

There were more than three million private enterprises in China in the first half of last year.

This is the conclusion of a new survey jointly conducted by the All-China Federation of Industry & Commerce and the China Private Enterprises Research Association.

The annual production value of these private firms reached two trillion Yuan or 340 billion US dollars.

The survey also reveals that though China's private firms are mainly concentrated in the manufacturing and commercial sectors, their shares in new emerging industries like services and technology has doubled year on year.

Chairman of the All-China Federation of Industry & Commerce Huang Mengfu says the private economy is now a significant component of China's national economy and a new booster of economic growth.

"China's private economy played an important role in meeting people's material demands, creating job opportunities, promoting reform of the economic structure, maintaining social stability and ensuring the country's economic safety."

To promote the private economy, the Chinese government has clarified the legitimacy of the private economy in its Constitution and stated that the private property of its citizens is being protected.

To help these private industries, special funds have been set up and consultancy services are being offered to enterpreneurs. Requirements for their market access have also been eased.

Meanwhile, the private firms are paying more and more attention to the quality of their products and trying to build their own brands by developing their own technology know-how, improving their management skills and exploring both domestic and overseas markets.

But despite these achievements, problems still exist. Overcharged management fees and defaulted debts payment remain.

As a result, Bao Yujun, chairman of the China Private Enterprises Research Association, says they chose to include in the survey a question on the issues that private enterprises are most concerned about, and find out what bother them most.

"They expect taxation reform soon, and want the protection of private property granted in the Constitution to be implemented. They also hope for the government's role in economic management to change and a social credit system and market order to be established."

The transition period for China's entry into the World Trade Organization is finishing this year. China's private enterprises will then face a direct challenge from the international market as well as development opportunities.

(CRI.com February 19, 2005)