BEIJING, Dec. 9 -- Business leaders yesterday called for more support to be given to private firms suffering financial difficulties to safeguard their future.

　　Huang Mengfu, chairman of All-China Federation of Industry and Commerce, wants a protection mechanism to help to deve lop the country's growing number of privately-operated enterprises.

　　"We can learn from the successful foreign examples to help to give a period of time for loss-making privately-run companies to adjust and improve by themselves," Huang said.

　　Huang is also vice-chairman of the National Committee of Chinese People's Political Consultative Conference, a top advisory body in China.

　　"We can introduce a bankruptcy protection period, like some foreign countries and regions, to help protect these privately-operated companies," Huang told the fourth session of the ninth Conference of All-China Federation of Industry and Commerce in Guangzhou, capital of Guangdong Province.

　　It is the first time the organisation had held its session in Guangzhou, which reflects the rise non-governmental sectors are playing in the economic growth of the area.

　　Huang said governments at all levels could help bail out major private firms that are operating in the red by injecting capital resources and reducing taxes.

　　He also urged private companies to take their own measures to ensure their sustainable growth.

　　They needed to expand their investment on research and development to further upgrade their production methods and structures, and improve the quality of their products in the coming years, he said.

　　The non State-run enterprises have played an increasingly important role in China's economic development in recent years.

　　By the end of September, China had more than 4.19 million private firms registered, an increase of 14.8 per cent compared to the same period in 2004.

　　Private companies now account for more than 50.5 per cent of the country's total number of enterprises.

　　They employ more than 57.39 million people, which outnumber those who are working in foreign-funded companies and joint ventures.

　　And the total registered capital of the country's private firms reached more than 5.8 trillion yuan (US$720.5 billion) by the end of September, an increase of 21.3 per cent on the same time in 2004.

　　Insufficient funds has become the major problem that prevents private firms from developing new technologies, Huang said.

　　Many creditors of private firms immediately demand repayments of loans when they know their debtors have begun making losses.

　　Many State-owned enterprises that have been running in the red have been able to operate for several years as local government has offered financial assistance.

　　In Guangzhou, private companies contributed to about one-third of the city's gross domestic product last year. There are more than 100,000 private firms registered in the city.

　　(Source: China Daily)