PRIVATE entrepreneurs and their supporters will lobby vigorously for an expansion of the rights of the non-state sector in the forthcoming National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC). Chinese sources said while the non-government sector was expected to displace the state sector as the mainstay of the economy before the year 2000, private entrepreneurs still suffered from discrimination. Statistics released yesterday showed the share of national industrial output value by state-owned enterprises had dropped to 48.3 per cent in 1992, down from 77.6 per cent in 1978. In Guangdong province, public enterprises employing more than 6.34 million people make up 52.4 per cent of the total registered capital. However, a number of reform measures introduced since the Third Plenum of the party Central Committee last November were prejudicial to the interests of the ''red capitalists''. For example, as a result of the centralisation of credit policy in the People's Bank of China and the continued ban on private or ''underground'' banks, private-sector businessmen had difficulty securing loans or preferential interest rates. The quasi-official China News Service (CNS) yesterday quoted members of the Shanghai municipal CPPCC as lobbying Beijing to provide private enterprises in the metropolis with a better economic environment. CNS said while Shanghai boasted 9,610 private enterprises, the highest number among all cities, their average registered capital was only 190,000 yuan (HK$168,720), or 54.9 per cent of the national average. ''The municipal government should enable units from different economic sectors to have an environment of equal competition,'' CNS quoted three CPPCC members who were themselves private entrepreneurs, as saying. In an unprecedented move last year, the national CPPCC ''reserved'' a number of seats for private-sector bosses. This practice has since been followed by most provincial and municipal-level CPPCCs. However, private entrepreneurs do not even have a token representation on the NPC. Economists in Beijing said that at the plenary sessions of the two bodies next month, liberal deputies would lobby for an expansion of their rights in doing business. The economists said, however, that deputies sympathetic to the state sector - who commanded a majority in the NPC and the CPPCC - might block moves to give the red capitalists a better deal. Meanwhile, the semi-official Hong Kong China News Agency reported yesterday that the 210,000 private enterprises in the country had been granted more freedoms. They have recently been allowed to operate in economic zones including bonded areas, development zones, as well as experimental zones, where taxes are lower than the rest of the country. Recently, 46 state-owned and collective enterprises in Zhejiang province were bought by, or merged with, private concerns. There are more than 400 joint ventures along the coast involving foreign companies and Chinese private enterprises.