The fourth nationwide inspection by the State Council has found that investment is thriving in some regions with optimized structure, while in some other regions, challenges still exist, such as too much paperwork and fierce market competition.
Major investment projects are moving along smoothly in Guangdong and Jiangsu provinces and Chongqing municipality. In Jiangsu, all projects planned in the 2016 central budget have been launched, with total investment of 29.7 billion yuan ($4.4 billion). In Chongqing, 52.6 percent of projects in the 2017 plan have been launched, and all projects planned in 2016 have started construction.
Meanwhile, the inspection group found that some factors such as the alteration of construction plans and cumbersome application procedures hindered some projects.
On July 19, an inspection group in Guangdong province found that the construction process of Jiacheng international port is slow due to alterations in the construction plan, and long procedures in applying for voltage power supply.
Policies to promote private investment have taken effect in some regions. In Shanxi province, the local government has been promoting public-private partnerships (PPP). In May, it published 215 PPP recommendation projects, with investment of 285.7 billion yuan.
In Guangdong province, private investment amounted to 966.4 billion yuan in the first half of 2017, rising 13.4 percent year-on-year. More money was poured into new industries and technologies. Investment in the cultural creative industry and technological service industry has grown 51.9 percent and 45.5 percent, respectively.
Market access has been eased for private investment in Chongqing. Private capital was allowed to enter transportation, telecommunication, exploitation of gas and petroleum, elder care, healthcare and education.
The inspection group also found that, although private investment in Chongqing is stable, investment confidence is yet to be enhanced because of a fluctuating market and fierce competition.
Foreign companies also are benefiting from a better investment environment. In Kunshan, a city in East China’s Jiangsu province, local government has issued tax rebates and exemptions for research centers set up by foreign companies, in order to encourage technological innovation.