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China's private economy hit 2.33 trillion yuan (280.78 billion US dollars) in 2002, or 23 percent of the country's total GDP, said Sun Xiaohua, vice-chairman of All- China Federation of Industry and Commerce, on Friday.

Sun, who was in Zhuhai to address the World Economic Development Declaration Conference, expressed his optimism about the domestic environment for private companies after the Third Plenum of the 16th Central Committee of the Communist Party of China (CPC) in mid October.

The stumbling blocks, which impeded the growth of private businesses, will be gradually removed, Sun said.

The government has allowed private companies to dabble in infrastructure and public welfare projects, where they were ruled out in the past.

It also pledged to treat private companies equally with other enterprises of the public ownership in loan granting, financial arrangement, taxation, land use and import and export business.

The number of private companies totaled 2.43 million by the end of 2002, a year-on-year rise of over 30 percent, Sun acknowledged.

Private companies benefit from China's entry into the World Trade Organization (WTO) in late 2001 and integration with the global economy, Sun said, adding that they will enjoy easier market entry, various financing channels and still freer cooperation with counterparts at home and abroad.

The country is in need of more private businesses, especially labor-intensive ones, to create new job opportunities, he said.

Among the 8.4 million people employed last year in the urban areas, 6.09 million found jobs in private companies.

Private companies have increasingly paid attention to regulating its operation and building credibility, Sun said,

"We also hope that the government will improve its credibility since China will develop a mature market economy, which require joint efforts from government departments and enterprises."

All-China Federation of Industry & Commerce is a leading non- governmental organization to work for non-state-owned businesses.

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