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Restrictions likely to be lifted on non-govt investment

(chinadaily.com.cn)
Updated: 2009-09-03 16:57

The National Development and Reform Commission (NDRC) has sent a document entitled "Several Suggestions of Further Encouraging and Promoting Non-government Investment" to the State Council, China's Cabinet, an unnamed official from the NDRC told Shanghai Securities News yesterday.

Related readings: China to increase investment in railway construction China urban fixed-asset investment up 32.9% in first seven months Shanghai simplifies investment norms for foreign firms

The official said encouraging non-government investment will be the priority of the NDRC this year. Planned government investment will focus mostly on infrastructure and improving people's livelihood, meaning industrial development will have to rely mostly on non-government investment for financial support.

The document highlights the expansion of sectors in which the non-government investment is allowed. The document has listed basic industry, infrastructure, finance and insurance, education and health, and public services as the five major sectors in which the non-government investment is permitted.

This loosening will help promote the faster development of private enterprises, according to Zhang Yongjun, an analyst from the Economic Forecasting Department of the State Information Center.

The document will be hopefully released publicly by the end of this year, according to sources.