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China encourages private investment in manufacturing upgrade

Updated: Nov 21,2017 2:26 PM     Xinhua

BEIJING — China wants its private sector to play a larger role in the country’s pursuit of high-end manufacturing, according to a government guideline.

The guideline, which has been jointly released by 16 government departments including the Ministry of Industry and Information Technology and the National Development and Reform Commission, said measures will be introduced to break the barriers that hamper private investment.

Private enterprises will be encouraged to participate in the construction of manufacturing innovation centers or establish national technological innovation centers on their own, said the guideline.

Meanwhile, the government will support private enterprises to enter sectors like smart manufacturing and help improve China’s basic industrial capacities.

Competitive businesses in the basic telecommunication sector will be open to private investment to push for faster and more affordable internet connections, it said.

Authorities should continue to optimize the range of government investment and treat all investors equally, said the guideline. Also, they should further cut corporate burdens, improve public services and increase fiscal support for the private sector.

In terms of financial support, the government will set up a national financing guarantee fund, encourage financial institutions to provide financing services for private manufacturers, and help private firms to receive direct financing through a multilevel capital market.

China is pushing its industries to move toward the medium-high end of the global value chain. In the first ten months of this year, private fixed-asset investment into the manufacturing sector rose 4.1 percent year-on-year.

The private sector contributes more than 60 percent of China’s GDP growth and provides over 80 percent of jobs.