'Boost private sector' plea

PUBLISHED : Friday, 11 July, 1997, 12:00am
UPDATED : Friday, 11 July, 1997, 12:00am

A noted liberal economist has called for a reduction in government subsidisation of the economy.

Cao Siyuan, who advised enterprises on bankruptcies and mergers, wrote in an article that the state sector's share of total assets and resources was too high, the China News Service reported.

In most countries, state-owned enterprises account for 15 per cent of the economy, but in China the figure hit 68.8 per cent in 1995.

Mr Cao admitted this figure had dropped since 1978, when they accounted for 91.8 per cent, but stressed that the proportion was still too high.

He said that while state-owned enterprises had been declining, non-state enterprises had been flourishing.

He called on the Government to take measures to help develop the private sector.

He said non-state enterprises produced 66.1 per cent of the country's entire output in 1995, using 31.2 per cent of its fixed assets.

He said the state was the Government of 1.2 billion people, not of 75 million state-owned enterprises.