China's non-state sector continues to expand
22/10/2008 17:04
Non-state businesses on the Chinese mainland will pay 748.46 billion yuan
(US$109.47 billion) in taxes this year, sources with the All-China Federation of
Industry and Commerce said today.
The prediction was made in a report
compiled by the federation and was published by the Social Sciences Academic
Press (China) yesterday.
It said that tax revenue generated by the non-state
sector would be 122.883 billion yuan, or 19.6 percent, higher than the 2007
level.
After 30 years of expansion, non-state businesses are now hurting as a
result of the ongoing global financial crisis that was initially ignited by the
US sub-prime mortgage crunch.
It is reported that at least 67,000 smaller
Chinese businesses are suffering from shrinking demand from abroad and mounting
export costs.
Some private businesses have shifted their focus from developed
eastern regions, where labor costs increased, to less-developed central and
western areas, where development potentials are huge.
According to the
report, it is imperative for the non-state sector to explore the same options.
It also recommends those businesses achieve industrial upgrading and independent
innovation, to establish their own brands and improve quality.
Xinhua
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