Individually owned businesses, private enterprises and other non-State sector businesses are expected to account for half of the province's total gross domestic product (GDP) value by 2008, according to a government resolution on accelerating individually funded enterprises' development, which was released last week.

The sector's GDP achievements have accounted for more than one-fifth of the province's total, with the tax revenue and profits of the sector growing by 48 and 50 percent from 2001.

There are 229 individually run and private enterprises that have an annual production scale of more than 100 million yuan (US$12 million) each.

To date, individually owned businesses, private enterprises and other non-public sectors of the economy have developed fairly fast and played an important role in stimulating economic growth, creating jobs, invigorating the market and increasing exports from the province.

With an annual 30 per cent growth rate, the sector increases employment by 500,000 workers annually. The private sector had a workforce of 5.4 million people by the end of 2002.

Individually owned enterprises sector have played an active role in purchasing, leasing, taking over and reorganizing more than 5,000 State-owned and collective enterprises in recent years.

The government report also says that the development of the individually owned and private sector of the economy is one of three ways the province can catch up with the country's top two economic powers, Guangdong and Jiangsu provinces.

The other two ways are attracting more foreign investment and building the high-tech sector.

The resolution says Shandong will further cut red tape, protect private assets and take full advantage of individually funded enterprises.

(China Daily April 28, 2003)