Official: Sectors such as civil airport construction, oil exploration will open
China plans to complete 165 key projects during the 13th Five-Year Plan (2016-20) period,and will welcome the participation of social and private capital, a senior official said onTuesday.
"Those key projects, involving many industries, will provide a big stage for private investors,"said Hu Zucai, vice-minister of the National Development and Reform Commission, thecountry's top economic planner.
"To encourage and guide private capital to invest in those significant projects, the governmentwill provide a fair market with clear direction," he said.
Hu said the central government takes private capital seriously. It will further open sectorsincluding civil airport construction and oil exploration to private investors. In the past, thosefields were dominated by State-owned enterprises.
Private investment has been weak since the beginning of the year.
For the first seven months, China's investment in fixed assets increased by 8.1 percent year-on-year, a 17-year low, while private investment created the lowest year-on-year growth inhistory, according to the National Bureau of Statistics.
Private investment in the oil and gas sector declined by 20.7 percent year-on-year for the firstseven months, and investment in the iron ore industry dropped by 37.4 percent year-on-year,which aroused public anxiety.
Premier Li Keqiang held an executive meeting of the State Council in June, askingdepartments to find problems facing private investment and try to take actions to stimulateprivate investments.
Hu said the government will offer better service for private investors, including shortening theapproval process and further opening markets.
Under the plan, private investors will have equal rights with State-owned companies in fieldsincluding medical care, education and infrastructure construction.
The 165 projects were selected on the basis of the opportunities they bring to relatedindustrial chains.
Xu Shaoshi, head of the NDRC, said in June that the problem of overcapacity has affectedprivate investment.
"They will not invest in the traditional industries, and it takes time to cultivate technology andmanagement teams to invest in emerging industries," he said.
Lin Boqiang, director at the China Center for Energy Economics Research at XiamenUniversity in Fujian province, said certain industries, such as oil and gas, are difficult for smallprivate investors, who are limited by technology and huge capital requirements.
