Private firms key to growth

China's major industrial enterprises registered a profit growth of 31.5 percent year-on-year in the first two months of this year, 29.2 percentage points higher than the growth in December, data from the National Bureau of Statistics indicate.

The 31.5 percent growth is appreciable and also seems to testify that China's economy is stabilizing. However, a closer look shows that the handsome profit growth of big domestic enterprises in January and February was largely stimulated by a drastic profit increase in such State-owned sectors as mining, ferrous metal smelting, oil and natural gas exploration, oil processing and coking, chemical raw materials and chemical products manufacturing as a result of production acceleration and price increases, while private enterprises played a trivial role.

Such kind of growth is also closely related to the large-scale infrastructure construction nationwide over the past year. Government-led infrastructure construction has been viewed as a main force to stabilize local investment. It is estimated that China's infrastructure investment will maintain roughly 20 percent growth this year to reach 16 trillion yuan ($2.32 trillion).