To encourage, support and guide the development of non-state businesses is important for building a well-off society and to speed up modernization in China, Premier Wen Jiabao said.

He spoke with private entrepreneurs during an inspection tour in east China's Zhejiang Province over the weekend. Wen visited villages and enterprises in Taizhou, Wenzhou and Hangzhou.

Wen reiterated that the basic economic system in China involves public-ownership as the main body, while other business patterns are developed commonly.

Public-ownership should be consolidated and developed unshakably, and non-State businesses encouraged, supported, and guided steadfastly as well, he said.

Wen proposed several suggestions to enhance a healthy development of non-State businesses.

The rights and interest of non-State enterprises should be protected according to the law, while such enterprises should do business legally, pay taxes according to the law and guarantee their employees' rights and interests.

Policies that encourage, support and guide the development of non-State businesses are to be made while non-State enterprises should carefully implement national industrial policies, environmental protection policies and other policies.

The State will create a fair market environment for non-state enterprises and further widen the entrance into the market while non-state enterprises should consciously abide by market rules.

The State will make it easier for the financing of non-state enterprises while businesses should, according to national regulations, maintain their financial affairs and funds management in good order in the financial markets.

There should be public support for the development of non-state businesses in society while non-state enterprises should upgrade by innovation so that they win the confidence of society by products and services of good quality.

There had been more than 3 million private enterprises in China, with 7.72 million investors and 350 million yuan (US$42 million) worth of registered capital by the end of last year, according to statistics from the State Administration for Industry and Commerce.

In addition to providing a large number of employment opportunities, the non-State businesses have also become an important contributor to the nation's economy by accounting for more than 50 percent of its gross domestic product.

Following the 1999 amendment of the Constitution which upgraded the private sector from "complement of the socialist economy" to "an important component" of the country's market economy, the latest amendment in March, by providing stronger protection of private property rights, has injected new momentum to the development of the nation's non-state sector.

(China Daily August 31, 2004)