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BEIJING, Oct. 22 (Xinhua) -- Non-state businesses on the Chinese mainland will pay 748.46 billion yuan (109.47 billion U.S. dollars) in taxes this year, sources with the All-China Federation of Industry and Commerce said on Wednesday.

The prediction was made in a report compiled by the federation and was published by the Social Sciences Academic Press (China) on Tuesday.

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 U.S. 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.