China advisory body spokesman denies contraction of private businesses

BEIJING, March. 2 (Xinhua) -- China's private businesses were not contracted despite closures, mergers and acquisitions last year when the country sought to combat the global financial crisis, a spokesman of the country's top political advisory body said Tuesday.

The impression that the expansion of state-owned enterprises outweighed the development of private businesses in 2009 might have been produced by a string of closures, mergers and acquisitions of unqualified factories and mines, Zhao Qizheng, spokesman for the annual session of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), told reporters Tuesday.

"Impression is not a reliable source for making conclusions, and we have to rely on statistics," said Zhao at a press conference.

"Changes in a specific sector do not tell the whole picture," he added.

Zhao cited several figures to shore up his view: the industrial value-added of private businesses went up 18.7 percent last year from a year earlier while that for state-owned businesses increased 6.9 percent.

Asset of private businesses jumped by more than 20 percent while that for state-owned enterprises was only up 14 percent, according to Zhao.

When state-owned businesses suffered a 4.5 percent fall of profit, that for private businesses shot up 17.4 percent, Zhao said.

To crack down on illegal small coal pits which claimed thousands of lives each year and step up efficiency, the country integrated 2,600 coal mines into 1,053 in coal-rich Shanxi Province last year, Zhao said.

"Although market economy has its internal rules, the government should create a sound environment of macro-economic policy," Zhao said.

Zhao noted the government had offered policy support to shore up non-public sectors, while political advisors had also voiced their concerns and suggestions.

The annual full session of the CPPCC National Committee will open Wednesday.