THE central Government is putting more restrictions on the fast-growing private sector as the focus of economic policy shifts from market reform to preserving stability.
The new regulations were formulated at a recent national conference on the private economy, which was not reported by the mainland media.
Private entrepreneurs among deputies to the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) have lobbied very hard for laws to ensure equal competition in the market place.
According to cadres who attended the conference, there were in late 1994 375,000 private enterprises and 20.15 million household companies.
Apart from having contributed a total of 120 billion yuan (HK$110 billion) in taxes, the private sector has provided employment for 23 million peasants and 17 million urban residents.
State Council ministers, speaking at the conference, pointed out that private enterprises had played a useful role as the 'supplement' to the state sector.