Promote private investment, with more measures being implemented.

　Private investment is a crucial component of the development of the private sector. To further boost private investment, a series of policy measures have been rolled out recently: the National Development and Reform Commission and the Ministry of Finance have introduced new mechanisms to encourage private enterprises to participate in public‑private partnership projects; the NDRC has explicitly strengthened support for key private investment projects by ensuring adequate access to essential resources; Chongqing has unveiled a package of 27 measures, while Guangzhou in Guangdong has put forward 21 measures to bolster the growth of private investment. Officials from relevant departments stated that, going forward, they will swiftly implement these policies to deliver tangible results, diligently promote projects to private capital, continuously invigorate private investment, and steadily expand effective investment.

　　Localities are accelerating efforts to support the development of private investment.

　　Private investment accounts for more than half of total investment and is a key component in expanding effective investment. Data show that in 2022, private investment reached RMB 31 trillion, roughly doubling from 2012, and its share of total investment rose to 54.2%.

　　Since the beginning of this year, private investment has faced certain pressures. “In the first half of the year, both the growth rate of private investment and its share of total investment declined,” said Luo Guosan, Director-General of the Fixed Asset Investment Department of the National Development and Reform Commission. In response to these challenges, the NDRC, in coordination with relevant authorities, has actively introduced a series of measures. In July this year, it unveiled 17 specific initiatives—focusing on key sectors and strengthening supporting mechanisms—to foster a favorable environment and help private investment stabilize and improve.

　　Localities are stepping up efforts to support the development of private investment. In August, Zhejiang unveiled 32 measures to promote the high-quality growth of the private sector, stipulating that at least 70% of the province’s “4+1” special funds must be allocated to private‑sector projects. In early September, Beijing publicly presented 57 key projects to private capital, while in late September, Jiangsu released its first batch of 430 major projects encouraged for private participation, with a total investment of RMB 323.5 billion.

　　As relevant measures take effect, the decline in private investment has narrowed for two consecutive months. “From January to October, private investment fell 0.5% year on year, with the decline narrowing by 0.1 and 0.2 percentage points compared with the first three quarters and the period from January to August, respectively,” said Luo Yifei, Chief Statistician of the Investment Division of the National Bureau of Statistics. He added that, excluding real estate development investment, private project investment grew by 9.1%. By sector, private investment in scientific research and technical services, the electricity, heat, gas, and water production and supply industries, and the accommodation and catering sectors expanded rapidly, increasing by 17.9%, 17.4%, and 10.2%, respectively. Private investment in infrastructure rose by 14.2%, outpacing overall infrastructure investment by 8.3 percentage points, while private investment in manufacturing increased by 9.1%, marking the fourth consecutive month of growth.

　　Fully mobilize the enthusiasm of private capital.

　　How can we further stimulate the vitality of private investment? Recently, the National Development and Reform Commission took the lead in drafting the “Guiding Opinions on Standardizing the Implementation of a New Mechanism for Public–Private Partnerships.” “The most salient feature of this new mechanism is that it maximizes incentives for private enterprises to participate,” said Li Chao, Deputy Director of the Policy Research Office of the National Development and Reform Commission.

　　Li Chao stated that China’s original intention in promoting public‑private partnerships was to attract private capital and foreign investment into the infrastructure and public‑utility sectors, thereby enhancing operational efficiency and management standards. Standardizing the implementation of this new PPP mechanism means staying true to that original purpose and returning to its roots, with the aim of maximizing incentives for private enterprises to participate. “At present, the structure of private investment is undergoing optimization and adjustment. From January to October, private investment in manufacturing and infrastructure grew by 9.1% and 14.2%, respectively, year on year, demonstrating robust investment dynamism. The new mechanism explicitly prioritizes the participation of private enterprises, which will further stimulate private investment and drive continued improvements in its structural composition,” Li Chao said.

　　The National Development and Reform Commission stated that the new mechanism has clarified the “List of New (including renovation and expansion) Concession Projects Supported for Private Sector Participation,” explicitly stipulating that projects with a high degree of marketization and relatively weak public‑sector characteristics should be wholly owned or controlled by private enterprises; for projects that are vital to national economy and people’s livelihood and possess strong public‑sector attributes, the private sector’s equity share should, in principle, not be less than 35%; and for a small number of projects involving national security, characterized by strong public‑sector features and natural monopoly traits, conditions should be actively created to support private‑sector participation.

　　“We will guide localities to advance new public‑private partnership projects in a standardized manner, in accordance with the requirements of the new mechanism, thereby fully mobilizing private capital and effectively boosting private investment,” said Li Chao.

　　Orderly expand market access for private investment.

　　Efforts to boost private investment are gaining momentum, with additional measures being expedited. Recently, the National Development and Reform Commission established the Bureau for Private Sector Development, with formulating policies and measures to promote the growth of private investment designated as one of its key responsibilities.

　　“Since its establishment, the Private Sector Development Bureau has worked with relevant parties to refine a regular communication and exchange mechanism with private enterprises, strengthen the sharing of experiences and mutual learning, and accelerate the formulation and planning of a series of policy measures,” said Li Chao. He added that, going forward, efforts will continue to improve institutional frameworks, build service platforms, and expand development space; orderly broaden market access for private investment; and support private enterprises in participating in critical core‑technology research, undertaking major national science and technology projects, engaging in global industrial division of labor and resource allocation, and contributing to major strategic initiatives.

　　At the local level, Chongqing recently unveiled 27 measures aimed at clarifying and specifying the sectors in which private investment is encouraged, as well as supporting the revitalization of existing assets through private investment. Meanwhile, Guangzhou has focused on addressing the practical challenges and key issues confronting private investors, formulating 21 policy measures to encourage private participation in priority areas and strengthen financing support for such investments.

　　An official from the Guangzhou Municipal Development and Reform Commission stated that, in response to the pressing financing challenges raised by private enterprises, the newly introduced policies set out concrete measures to improve financing mechanisms, strengthen guidance, broaden funding channels, and unlock existing assets. At the same time, the policies explicitly call for intensifying the promotion of major projects, building an intelligent service platform for private investment, and reducing investment and operating costs. A coordination and evaluation mechanism for private investment has also been established, further enhancing the quality of government services and ensuring smoother channels for private capital. (Reporter Qiu Haifeng)