People walk in a shopping district in Beijing, China, July 14, 2023. REUTERS/Thomas Peter/File Photo
BEIJING – China’s state planner on Monday unveiled measures to promote, encourage and stimulate private investment in some infrastructure sectors, saying it will strengthen financial support for private projects.
The latest announcement comes as China pledged last week to improve the private sector, issuing Communist Party and cabinet guidelines as authorities pledged to make it “bigger, better and stronger” amid a post-pandemic economic recovery.
The National Development and Reform Commission (NDRC) said in a statement that it wants to attract more private capital to participate in the construction of large national projects.
The NDRC said that a list of sectors ranging from transportation, water, clean energy, new infrastructure to advanced manufacturing and modern agriculture will be available for private investors to participate in, according to the statement. More specific details on this will be provided later, she added.
Over the past few weeks, investors have been betting on more stimulus measures to shore up an economy that has quickly begun to lose momentum after the initial post-COVID rebound. However, some gradual steps announced by the authorities have disappointed the markets.
In guidelines released last week, China said it will create a “traffic light” system to clarify the areas in which private investors can invest.
“The importance of enhancing private investment must be fully recognized,” and the NDRC will strive to keep the ratio of private investment in fixed assets among all investments at a “reasonable level,” the statement said.
Private investment in fixed assets contracted 0.2 percent in the first six months from a year earlier, in contrast to an 8.1 percent increase in investment by state entities, official data showed last week, highlighting weak private sector confidence.
The NDRC also committed to strengthening financial support for private investment projects.
The NDRC will set up a special fund from the central government budget to provide annual support to 20 cities with high growth in private investment and strong policy implementation, according to the statement.
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