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Considerable changes have taken plance in China's private economy in six aspects in recent years.

Private capital normally invests heavily on textiles, general machinery, construction and transportation, commerce and service. It has begun to go to chemicals, infrastructure, utility.

Statistics shows that in the 40 industrial sectors the non-public investment funds more than half, or even 70 percent of the investment for 27 sectors. In sectors such as power, metallurgy and autos, it is not rare to have a private business which inputs hundreds of millions of yuan or even tens of billions of yuan.

Generally, labor-intesive small and medium sized enterprises are playing the leading role. Now giants endowed with rich capital and tech resources have emerged. Private businesses hold 1.18 million yuan of assets in 2003 on average, from 97,000 yuan in 1990 and 755,000 yuan in 2000.

According to the statistics by the All-China Federation of Industry and Commerce in 2002, the top 500 private companies valued at 1.29 billion and generated 1.41 billion yuan sales on average.

Private firms are still run by individuals and families. They have absorbed stakes from diversified sources. In recently years, private businesses are mostly incorporated by various shareholders. The number of limited companies funded by private capital reached 1.74 million in 2002.

Operation of private businesses used to be small without focused business and scattered in cities and counties. Now in some areas massive groups with specialized business have taken shape.

Geographically, the private economy first took off in coastal areas. Now its development in the mid-west is gaining momentum. In recent years, the growth of the private economy in the mid-west outpaced that of the national average. In most areas, the non-public economy accounts for as much as one-third of the local GDP.

The non-public sector is basically based on the domestic market. But it has begun to extend its outreach to the international market. As private importers and exporters are freer than ever to engage in foreign trade, a lot of private businesses focus more on the foreign trade.

The State Council issued its resolution on further development of the non-public economy at the end of last month. Private fund is admitted wider access to the market. It is widely believed this year will see a take-off the private sector in China.