The National Development and Reform Commission Photo: VCG
China’s top economic planner on Monday issued a notice saying it would further build up relevant mechanisms and improve the policy environment to spur the development of private investment, the latest effort to boost the nation’s economic recovery.
In clarifying the goals, the National Development and Reform Commission (NDRC) said it will strive to keep the proportion of nationwide private investment in fixed-assets investment at a reasonable level.
It aims to drive further improvement in the private investment environment, enhance the investment willingness of private enterprises, and boost their vitality.
The provincial development and reform commissions at local levels should clarify the proportion of private investment in the region and the focus on objectives including the growth rate of infrastructure investment from private capital, formulate specific measures, consolidate the responsibilities of all parties, and promote the implementation of those tasks, according to the official WeChat account of NDRC.
Private capital is encouraged to participate in major projects including transportation, water conservancy, clean energy, new infrastructure, advanced manufacturing, modern facility agriculture and other fields, the notice read.
Private investment projects are also encouraged to issue infrastructure real estate investment trusts (REITs) in a bid to further expand investment and financing channels for private firms.
The notice came amid the nation’s all-round efforts to spur the private economy, a major pillar of the world’s second largest economy.
China on Wednesday issued guidelines on boosting the growth of the private economy, highlighting that it will ensure that enterprises under different ownership structures will operate in an arena of fair competition and be protected equally by the law.
The guidelines, which is committed to improving the business environment, enhancing policy support and strengthening the legal guarantee for development of private economy, followed a recent array of meetings held by the Chinese leadership and multiple government departments including the NDRC, with private company representatives to discuss and learn about their business situations and operating difficulties.
China’s private economy has emerged as a crucial driving force of the country’s development. It generates over 50 percent of tax revenue, over 60 percent of GDP, over 70 percent of technological innovation achievements and over 80 percent of urban employment. Private firms account for 90 percent of the total number of enterprises, according to official data.
Moving forward, the NDRC said it will work with relevant parties to earnestly implement the measures issued in Monday’s notice, striving to create a good environment, and promote the high-quality development of private investment.