It is reported that private firms are happy to see that investment restrictions are to be further lifted, as China aims for further steps in reforming its investment and financing system, encouraging social investment participation with more compliant requirements, including for project planning and fire prevention.
The State Council's executive meeting, chaired by Premier Li Keqiang on July 5, decided to further lift restrictions on private investors, while more measures to simplify project approvals are in the pipeline.
The meeting also urged that more high-quality assets be used in Public Private Partnerships (PPP) to attract a greater number of social investors, as well as using returns in such projects for new programs in infrastructure, public services, poverty alleviation, and the Made in China 2025 strategy, according to a statement after the meeting.
In recent years, China has streamlined administrative reviews, focusing more on compliance oversight to make the business environment easier for private and foreign investors.
China's private investment grew at 7.7 percent for the first quarter in 2017, a 2 percentage-point increase compared with the same period last year.
Premier Li has stressed a number of times that investment plays a vital role in boosting demand and consolidating employment.
Since 2013, the number of projects requiring approval from the central government has reduced by 90 percent, while the time required from approval being granted has also been reduced by 90 percent in some places, according to government statistics.
The premier also said when meeting with a group of economists and entrepreneurs on Thursday that aggregate demand will be appropriately expanded while effective investment, especially private investment, should be boosted to enhance the driving force that domestic consumption has provided.
More policy and market regulation innovations are in the pipeline to create a fairer and more enhanced rule-based market environment, as decided at the executive meeting on July 5. The upcoming measures will create a level playing field for investors from home and abroad, boosting steady private investment growth, according to the meeting. (Source: China Daily)
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