China Plans Policy Improvements to Boost Private Investment

China will tweak its policy environment to stimulate the development of private investment, its state planner said on Monday in a notice.

Private enterprises will be incentivised to invest in 102 major projects in areas such as transportation, water conservation and carbon reduction, according to the notice published on the website of National Development and Reform Commission (NDRC).

China will increase policy support to stimulate the vitality of private investment, stabilise market expectations and increase job opportunities, as “private investment accounts for more than half of the total social investments,” it said.

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The world’s second-biggest economy showed surprising growth in the third quarter but the recovery was dimmed by a deepening property slump, weakening consumption and sustained Covid restrictions.

Beijing also said it would support the development of the platform economy with a focus on investment of key projects such as artificial intelligence, cloud computing and blockchains.

Central-owned enterprises will be encouraged to step up the use of new products and technologies from private enterprises.

Policymakers last week pledged that growth was still a priority and they would press on with reforms, in an apparent bid to soothe fears that ideology could take precedence as President Xi Jinping began a new leadership term and strict Covid curbs exact a growing toll on the economy.