Private sector ready to overtake shrinking state output
CHINA'S state-owned enterprises were shrinking and set to be gradually taken over by the private sector, an official report said yesterday.
The decreasing share of state-owned enterprises in the national economy was detailed in the latest findings of a survey conducted by the State Commission for Economic Restructuring, Xinhua (New China News Agency) reported.
''The unitary economic structure dominated by public ownership has already been replaced by a multiple economic structure, with public ownership as the backbone.
''A more diverse economy is in the process of developing,'' it said.
Statistics showed that the share of national industrial output by value of state-owned enterprises had dropped to 48.3 per cent in 1992 from 77.6 per cent in 1978.
The total industrial output of collective enterprises has grown from 22.4 per cent to 38.2 per cent over the same period.
Private companies make up 13.5 per cent of the economy by value, as of 1992 from zero in 1978 when the open policy was introduced, Xinhua said.
A similar trend in the growth of the private sector has been evident in the total retail sales of consumer products, it added.
The state sector share of retail sales by value has dropped from 54.6 per cent in 1978 to 41.3 per cent in 1992.
The share of private sector retail sales by value has dramatically surged from 2.1 per cent in 1978 to 30.8 per cent in 1992.
According to Xinhua, the growth rate of state-owned sector has been far slower than the pace of growth of the private sector.
The total assets of state-owned industry had gone up by 14.4 per cent in 1992, compared with the previous year.
The total assets of collective industries, rural enterprises and other firms, including joint ventures, have grown by 28.5 per cent, 40 per cent and 48.8 per cent respectively, the report said.
Xinhua said the private sector share had already exceeded that of the state sector in the economies of some regions such as Guangdong.
The southern province saw the total number of private firms rise to 1.17 million in 1992, with registered total capital of 260 billion yuan (HK$230.88 billion).
The total registered capital has taken up 52.4 per cent of the regional economy, surpassing state firms which have only 31.2 per cent.
The State Industry and Trade Administration also recorded an increase in new locally funded enterprises last year.
The total number of newly registered locally funded enterprises stood at 1.83 million yuan last year, up by 46.4 per cent on 1992's figure.