Liu Yonghao on Private Economy

By staff reporter Wang Song

At a panel discussion during the ongoing CPPCC(Chinese People's Political Consultative Conference) Liu Yonghao, president of New Hope Group, stressed the importance of private sector to the national economy.

According to Liu, the private sector hires 10 to 20 percent people in employment, works on 30 to 40 percent of the nation’s resources, pays 50 to 60 percent of taxes, provides for 60 to 70 percent of services and products, and creates 80 to 90 percent of new jobs. The positive role it plays should be fully recognized. He hopes the government could launch more incentives for private economy, and make them a basic state policy.

Mr. Liu said that if the national economy functions like a human body, state-owned enterprises (SOE) serve as the skeleton, while non-public businesses are the blood and muscles. Both are vital to sustain life.

New Hope is one of the largest agribusiness enterprises inChina.