China has released a slew of measures including improving government services and offering more financing channels to encourage private investment.
The measures also include delegating power, strengthening regulation, and attracting more private funds for public-private partnerships, according to a guideline issued by the State Council on Friday.
The guideline came following a drop in private investment growth. Private fixed-asset investment (FAI), which accounts for more than 60 percent of the total FAI, grew 6.4 percent year on year in the first eight months of the year, slowing from a 6.9 percent rise for January-July.
Poor implementation of government policy, high costs and limited access to funding are the main obstacles to private investment, the guideline said.
The government will improve the credit rating system and optimize the management of credit extensions for private businesses, increasing channels for them to raise funds.
The country will also lower operating costs for private companies and encourage them to participate in major programs such as “Made in China 2025,” modern agriculture, and technological upgrade in industrial enterprises.
Report courtesy xinhua
Frontpage August 12, 2020