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He praised private entrepreneurs' role in development. The non-State sector makes up about two-thirds of the nation's economy and generates three-fourths of the jobs in urban areas.

The number of private enterprises grew to 4.95 million in 2006, up 15 percent, Huang said.

The private sector now accounts for more than 57 percent of all enterprises in China, and employs 64 million.

In a separate category, small businesses provided 50.5 million jobs in 2006, according to the government advisor.

Private enterprises paid 349.5 billion yuan ($44.8 billion) in tax last year, up 28.6 percent year on year and higher than the average national growth.

Individual businesses paid 119.5 billion yuan ($15.3 billion) in tax, up 18.6 percent, Huang reported.

The central government issued a 36-point guideline to support the development of the non-State economy in 2005 but obstacles still remain, he said.

"Progress has been slow in lowering the old market barriers," he said, adding that credit channels for private businesses, in particular, continue to be a problem.

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