The number of new private enterprises in China is on the decline, according to a yearbook released by the All-China Federation of Industry and Commerce and the Chinese Private Enterprise Academy (CPEA) on Wednesday.

It said the total number of private Chinese firms by the end of June last year was 6.239 million. That's an increase of less than four percent compared to the end of 2007.

By contrast, the rate of increase in 2007 was 10.7 percent, 15.8 percent in 2006. The average rate of increase was 19.6 percent from 2000 to 2005.

The yearbook attributed fewer new Chinese enterprises to a number of reasons such as soaring prices for raw materials, energy and labor costs. It also said the government's more strict control of land use, the yuan's appreciation as well as fewer export rebates hurt enterprise start-ups from getting off the ground.

The yearbook also stated that three-fourth of Chinese private enterprises have a registered capital of less than one million yuan (US$147,000). Those enterprises were mainly engaged in manufacturing, retail, the wholesale business and construction.

(Xinhua News Agency March 26, 2009)