China has unveiled new measures designed to channel private capital into traditionally state-funded infrastructure projects, as Beijing steps up efforts to reduce investment restrictions and bolster the private economy.
The 13-point document released on Monday by China’s cabinet, the State Council, includes measures to encourage private investment in major projects in a range of sectors – from power generation to transport.
“Private investment serves as a key barometer reflecting economic vitality and plays a crucial role in stabilising growth, employment and expectations,” said Guan Peng, deputy director of the National Development and Reform Commission’s (NDRC’s) Department of Fixed Asset Investment, at a press conference in Beijing on Tuesday.
He noted that the State Council’s new measures would help expand market access, remove bottlenecks and strengthen safeguards for private enterprises to support private investments.
Any project in areas including rail, nuclear power, hydropower, oil and gas pipelines and the water supply that is expected to generate positive financial returns will now be required to include an evaluation detailing the feasibility of attracting private investment when applying for central government approval, according to the document.
“This policy outlines clear requirements for encouraging and supporting private capital participation in key sector projects, sending a strong signal to promote private investment development,” Guan said.