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12-11-2008 Dev´t of China´s private economy over 30 years WATCH VIDEOSource: CCTV.com 12-11-2008 11:06 Recognized as an indispensable component of the country's market economy, the private sector now comprises 60 percent of the country's total number of companies. But 30 years ago, the sector was all but nonexistent in China. But things began to change in 1978, when party leaders began reexamining the structure of ownership. Four years later, the reform policy progressed with an important change in the Chinese Constitution. The private sector was no longer denounced as an evil of capitalism, but was regarded as a necessary supplement to the public economy. Du Xiaoshan, Professor of Chinese Academy of Social Sciences said "With the support of the reform policy, China's private economy experienced phenomenal growth during the 1980s. Most importantly, people's attitudes towards private entrepreneurs also changed. They realized that there is nothing wrong about earning a better life through hardwork." Within 30 years, the private economy had gone from being worth nothing to being worth ten trillion yuan in 2007, representing 40 percent of the national industrial output. This is more than that of the public sector and international sector. The private sector has generated 66 percent of the country's patents and 82 percent of new products over the past 20 years, proving it's more innovative. It also creates 6 million new jobs each year, about 75 percent of the annual total. Those figures are something nobody expected 30 years ago. Du Xiaoshan said "The private sector was initially recognized as a "supplement to the state-owned economy" and now as an "important component of the socialist market economy", the change has been immense. As the opening and reform policies are set to continue, the private sector will only get more important in China's overall economy." There are 15 million other private entrepreneurs across the country. Perhaps the most remarkable thing about Mr. Huang is that he has built his business in a small town in Hunan which is an agricultural province. Most ambitious and talented people leave the province for the brighter lights in Guangdong, Shanghai, or Beijing. Mr. Huang's story, which is part of the broader success story of the province proves that if it can happen in Hunan, it can happen anywhere in China.