China's private sector has lifted up its voice appealing for an early improvement of legal protection on private properties and a fairer competition with foreign and state-owned enterprises in a post-WTO ear of this nation.

　　China's top business leader Jing Shuping made such an appeal during the annual full session of the Ninth National Committee of the Chinese People's Political Consultative Conference (CPPCC), a major Chinese political advisory body, which was just wrapped up in Mid March.

　　"It is critical to safeguard the legitimate interests of investors before encouraging them to lay out money,'' said Jing, chairman of the All-China Federation of Industry and Commerce.

　　Jing's federation, a national association for entrepreneurs, submitted a proposal to the annual full session of CPPCC calling for amending the Constitution to ensure stronger State protection of private property and clarify whether the country will exercise nationalization or expropriation.

　　The Constitution stipulates that State-owned property is ``divine and imprescriptible.''

　　It also said that the country must protect its citizens' legitimate income, bank deposit and home.

　　But such a stipulation could be interpreted as excluding means of production from State protection, according to the federation's proposal.

　　The Constitution bans destruction of State-owned properties ``by any organizations or individuals by any means.''

　　It does not offer the same level of protection given to private properties, however, according to the proposal.

　　The federation said it hopes that the Constitution will stipulate its protection of private property in language as clear and as strong as that applied to State-owned properties. The federation, which represents non-governmental enterprises in China, is one of 34 sections represented in the CPPCC.

　　The proposal also urges the Constitution to make clear whether the nation will exercise nationalization or expropriation.

　　"Without such a stipulation, the future of some private enterprises remains unknown, and that's a disadvantage for social stability,'' the proposal states.

　　The private economy, which has stemmed from the weak traditional domestic industry, was quite weak during the early years after liberation of the nation in 1949.

　　All the private enterprises in China had a total assets worth just 2.2 billion yuan and only 760,000 private entrepreneurs in 1956.

　　The opening-up and reform policy introduced by the Party in 1978 gave new momentum to the development of China's private economy.

　　The nation now has more than 1.7 million privately run domestic enterprises with an investment of 1.1 trillion yuan (US.85 billion) and a labour force of 27 million, statistics show.

　　Private enterprises are private businesses employing more than eight people. Those with fewer than eight employees fallsintosthe category of individual businesses in China.

　　The 1999 amendment to the country's Constitution upgraded the non-State economy from a "complement to the State-owned economy" to "an important constituting part"of the socialist market economy.

　　It has been widely regarded as a milestone in the promotion of private enterprises in China.

　　Inspired by that, Minsheng Bank went public in 2000. It is the first private bank in China.

　　However, Jing said loopholes in current civil and economic legislation have prevented the constitutional stipulation from being turnedsintosfacts and the private sector is still facing difficulties in many areas, such as market access and fund-raising.

　　The private sector believes that the revision of Constitution and a clear-cut stipulation on the protection of private properties will bring them a new vista to develop and grow stronger. In the meantime, the private sector is urging for a fairer competition environment and more equal treatment.

　　National treatment, referring to no discrimination against the private sector in domestic competition, has become the most popular term among private entrepreneurs especially after China officially became a member of the global trade club.

　　Although non-State enterprises have played an important role in the national economy -- accounting for 63 per cent of the nation's GDP and 74 per cent to the added value of industrial output-- they have access to less than 30 per cent of bank loans.

　　Actually the central government has already realized the weight of private sector in pulling the national economy out of the negative impact of global economic doldrums.

　　The State Development Planning Commission issued an announcement on promoting and guiding non-governmental investment on December 11, the exact day that China's entrysintosthe World Trade Organization became effective.

　　The announcement states that private investment can enter any area that is open to foreign investment and private investors can enjoy any preferential policies that the foreign investors have.

　　It encouraged private investment to participate in urban infrastructure construction such as water supply, sewage and garbage treatment, road and bridge building projects.

　　It also encouraged private investment to have a more comprehensive participation in the service sector by lowering market access qualification standards in foreign trade, education, and culture and intermediate services.

　　Jing urged related governmental departments to work out more specific regulations to translate this general policysintosconcrete measures.

　　"These measures should be open and transparent," Jing added.

　　Jing's federation has also submitted a proposal to establish a national credit system to help stimulate investment.

　　The establishment of a national credit system is of great importance for China's economy, especially for the private sector, to meet challenges after China's accessionsintosthe World Trade Organization, Jing said.

　　An effective and complete social credit system, the cornerstone of market economy, could help regulate the market order, according to the proposal raised by Jing's federation.

　　Jing said the early establishment of a national credit system is conducive to helping the private sector raise money.

　　Commercial banks are typically cautious about giving loans to private enterprises, especially small and medium-sized ones, due to the risks involved, he said.

　　"A sound credit system will help expand domestic demand and encourage consumption," Jing added.