China to improve policy environment for private investment, platform economy investment supported in key projects

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China will improve the policy environment for private investment, the National Development and Reform Commission (NDRC), the top economic planner, said in a statement on Monday.

The country will increase policy support to invigorate private investment, help mobilize the enthusiasm for investment, stabilize market expectations, create more jobs and promote high-quality economic development as private investment accounts for more than half of total investment, it said.

The NDRC said that it will further improve the social environment for private investment, set up “red lights” and “green lights” on the premise of preventing disorderly capital expansion, and introduce a number of “green light” investment cases to regulate and guide the sound development of private capital.

Relevant departments should respond to market concerns in a timely manner, stabilize market expectations, assess the consistency between proposed policies and macro policies, and not let policies and measures dampen the enthusiasm of private investment, it said.

The NDRC will support private investment in 102 major projects involved in the 14th Five-Year Plan (2021-25) and projects that serve the national strategies, such as transportation, water conservation and energy projects for carbon reduction and vowed equal treatment to private investment in the bidding process.

The authority will support the development of the platform economy with a focus on investment of key projects such as artificial intelligence, cloud computing and blockchain, it said.

Central government-administered SOEs will be encouraged to increase the use of new products and technologies from private companies, it added.

Asked if China has now completed rectification of the platform companies, Cyberspace Administration of China on Monday said it will give equal attention to promote development of industry and carry out regulatory norms, place equal emphasis on social and economic benefits, so as to create a favorable environment for the development of platform companies.