Economy

Private sector to be larger part of China's economy

(Xinhua)
Updated: 2010-10-20 16:57

BEIJING - China's private economy will achieve greater development and make up a larger part of the nation's economy, a senior political advisor told Xinhua in an exclusive interview published Wednesday.

"At present, although there are still some problems affecting the private sector's growth, the trend for the sector's continued development is for sure," Huang Mengfu, vice chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said.

"It is evident the government has issued a series of policies favorable for the private economy, including the private investment support plan unveiled by the central government in May, " said Huang, who is also chairman of the All-China Federation of Industry and Commerce.

Huang also talked about private enterprises' charitable work in the interview.

Efforts in charity should be a part of private sector social responsibility, but it should not be the only one, Huang said.

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"Enterprises should give some of their profits to charity for the public good, but they should not be pressed to do so," Huang said.

"Private enterprises can also contribute to society by offering more job opportunities," he added.

When talking about China's overall economic situation, Huang said one of China's important achievements over the past five years has been allowing more of its citizens, especially low- and medium-level income groups, to share in the benefits of the reform and opening-up.

Efforts to let them benefit even more should be continued in China's development plan for the next five years (2011-2015), he said.

Huang called on the government to streamline the relationship and competition between China's State-owned enterprises and its private enterprises, to boost common and coordinated development.

He also called on the government to initiate more daring measures to promote private investment, innovation and domestic demand, to improve the people's living standards.

Moreover, China should reduce its economic dependence on resources and energy, to ensure more sustainable development, Huang said.