Reform imperative to engage private firms in national projects

The top authorities have unequivocally said that China will improve the long-term mechanism for private enterprises to participate in major national infrastructure projects.

In recent years, private enterprises have actually participated in the construction of China's high-speed railways, nuclear power plants, oil and gas pipelines, and other major projects. However, major national projects are for public welfare and require huge investments. This affects private enterprises' expectations and confidence on whether long-term stable returns can be obtained from their investment. At the same time, the arduous construction of some projects and high operation and management requirements also dampen the investment enthusiasm of private enterprises in these areas.

Supporting private enterprises' participation in major national projects shows the country's determination to promote the growth of the private economy and the high-quality development of private enterprises. Given that private investment is more flexible and values efficiency, its participation in major national projects can help broaden the medium- and long-term investment channels for private capital and boost the confidence of private enterprises. In this process, private enterprises can also play a role in stabilizing economic growth and employment.

Major national projects involve cutting-edge technologies and require the joint efforts of an entire industry chain, while private enterprises play a major role in technological innovation, and their participation can promote technological progress and industrial upgrading.

In recent months, China has taken a number of measures to promote the development of the private economy by improving laws and policies, accelerating legislation, introducing fair market access, and extending financing support. It has also improved regular communication mechanisms to coordinate and solve practical problems that private enterprises face.

Ever-increasing positive factors have enhanced the confidence of the private sector. In the first 10 months of this year, private investment in the manufacturing industry increased by 11.4 percent year-on-year, 2.1 percentage points higher than the growth rate of overall manufacturing investment.

The country should continue to deepen reforms to provide more opportunities and space for private enterprises to participate in major national projects by extending equal treatment to State-owned and private enterprises at the institutional and legal levels, unifying market access and breaking hidden barriers hindering the entry of private enterprises.

ECONOMIC DAILY