China sees more new firms in first three quarters

BEIJING - The number of newly founded companies in China has continued to surge in the first three quarters of this year amid government efforts to encourage entrepreneurship and innovation, data showed.

A total of 4.51 million new companies were set up in the Jan-Sept period, a daily average of 16,500 new firms, representing a 12.5 percent growth year on year, according to statistics from the State Administration of Industry and Commerce (SAIC).

In the third quarter, new companies have created more than 25 percent of new jobs in the market, the SAIC said.

For companies set up in the third quarter last year, 69.7 percent of them stayed in businesses one year after establishment, with each firm employing an average of 7.42 people, up from 6.27 people when they started, a SAIC survey showed.

The springing up of new market entities, especially innovative enterprises, has strengthened the micro-foundation of continued economic growth, said SAIC spokesperson Yu Fachang.

China has been making efforts to create a better business environment. Through simpler approval processes, lower corporate fees and technology-based services, the government is transforming its functions to let the market play a larger role in the economy.