Steps set to stimulate investment

China will roll out a series of targeted measures to encourage private enterprises to invest with confidence and achieve satisfactory returns, the State Council, the country's Cabinet, said on Friday.

Dedicated measures will be employed to address the pressing concerns facing private businesses, including expanded market access and better government service, according to the State Council Executive Meeting chaired by Premier Li Qiang.

It was stressed at the meeting that the government will support private businesses to scale up investment in emerging services and next-generation infrastructure.

Steps will be taken to strictly implement relevant regulations in bidding and tendering processes, ensuring that a designated share of government procurement is reserved for small and medium-sized enterprises, while also ramping up support for private investment projects through increased central budget allocations.

Policymakers will foster a fair and competitive market environment, eliminating various hidden barriers that restrict private investment, and strengthening innovation support and financing services, it was stated.

Prior to the Friday meeting, the National Development and Reform Commission said it would improve the long-term mechanism for private enterprises to participate in the construction of major national projects, and set minimum requirements for private investment stakes in key projects in areas such as railways, nuclear power, and oil and gas pipelines.

In the first seven months, the number of private enterprises that won bids for construction projects reached 366,000, a year-on-year increase of 11.9 percent. The share of construction project contracts won by private enterprises reached 76 percent during this period, the commission said.

During the same period, private investment in China's accommodation and catering industry grew 19.6 percent year-on-year, while infrastructure saw an 8.8 percent increase, culture, sports and entertainment rose 8.1 percent, and manufacturing registered 5 percent growth, said the National Bureau of Statistics.

Private capital is transitioning from traditional real estate development toward high-end manufacturing, infrastructure and emerging service sector industries — a shift that has become a crucial driving force for stabilizing growth, optimizing economic structure and promoting job creation, said Wen Bin, chief economist at China Minsheng Bank.

Going forward, there is a need to further break down market barriers and optimize the business environment by building a unified national market, Wen said.

wangkeju@chinadaily.com.cn