Boom time for private sector in 2012

The development of China's private sector is likely to witness a breakthrough in 2012, as the authorities consolidate rules to lower entrance limits and become more reliant on the private sector against the backdrop of an economic slowdown, said analysts and executives.

Uncertainty over external demand and slower economic growth in the world's second-largest economy will make the government rely more on the growth momentum generated by the private sector, said Bao Yujun, president of All-China Private Enterprise Federation, on Sunday at the Boao Forum for Asia.

He said the official target of a 16 percent increase this year in fixed asset investment indicates total investment of 36 trillion yuan ($5.4 trillion).