China's township-run businesses grew steadily in 1998, according to the Ministry of Agriculture.

The turnover of township enterprises were up 16 percent to 9.5 trillion yuan and profits rose 11 percent to 540 billion yuan. The added value of such enterprises was estimated at 2.4 trillion yuan last year, 17.5 percent more than for 1997.

The added value of township businesses in central parts grew 17.4 percent in the first 11 months and in western parts it grew 27.1 percent.

Private businesses are a major force in township enterprise growth, with the added value worth a trillion yuan, up 22.6 percent from 1997.

However, township enterprises are facing difficulties, with exports in 1998 estimated at 8 percent, 8.8 percentage points lower than for the previous year. And, 15 percent of China's township enterprises suffered losses in 1998, which was 7 percentage points higher for the previous year. Total losses of companies operating in the red rose 25 percent to 60 billion yuan.