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State Council issues circular to boost private investment

(chinadaily.com.cn) Updated: 2016-07-04 13:23

State Council issues circular to boost private investment

An employee works on an assembly line producing automobiles at a factory in Qingdao, Shandong Province, March 1, 2016. [Photo/Agencies]

The Chinese government will further improve private investment in the country, take measures to solve difficulties in enterprises gaining funds, and reduce business burdens.

China's State Council said it would further inspire initiative, unleash potential and encourage innovation in the private sector, according to a circular on the government's official website.

The National Development and Reform Commission, together with related departments, will set up a supervision group. It will launch a special inspection to provinces and cities that saw a big drop in private investment beginning in the middle of July.

Meanwhile, the country will put efforts to create a fair, open and transparent competitive market and further open access to civil airports, telecommunication operation, oil and gas exploration and development.

On June 22, Chinese Premier Li Keqiang called on central and local government departments to take concrete steps to boost private investment, after hearing reports from a related inquiry at a State Council executive meeting he chaired.

Private investment has been playing a vital role in China's economic development in recent years. It now accounts for 60 percent of China's gross domestic product, 80 percent of jobs, and over 60 percent of China’s total fixed asset investment.

Private investment is of critical importance for China to maintain stable economic growth, secure employment and reform its economic structure.

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