With the growth of private investment weakening in the first six months of the year, there’s a need for effective implementation of benefit policies to stabilize and boost private investment.
Private investment, which accounts for over 60 percent of China’s total fixed-asset investment, plays a significant role in ensuring the steady growth of the economy. However, the supporting policies and measures have not been strictly implemented, which is seen as a major reason hampering the development of private investment.
The State Council Inspection Team has found that at local levels, some policies lack stability and continuity, while some have proved to be impractical and other lack coordination between departments.
Sheng Laiyun, spokesman of the National Bureau of Statistics, said that in some regions the threshold for private investment is too high and related policies are difficult to implement due to lack of coordination between departments.
There is a need to formulate practicable policies, strengthen inter-departmental coordination, loosen market access, and streamline administrative procedure to promote the effective implementation of related policies and ensure a fair business environment for private investment.
Meanwhile, the State Council has recently released a guideline which establishes an accountability and assessment system to tackle the issue of ineffective implementation of policies for private investment.