Never ignore small investment projects as many of them could make a big impact, Premier Li Keqiang said at the State Council executive meeting on July 5.
He said the ultimate target of investment is to satisfy aggregate demands, boost consumption and drive employment. Private and foreign investment has been playing an important role in this in recent years.
These words came after a report on reforming the investment and financial system was released at the meeting, which urges more focus on the role of social capital to promote effective investment.
Media reports said that the Premier had underlined the same issue at least 10 times at the cabinet’s executive meetings in 2014, and twice in 2016.
On July 5, Premier Li said the reform is critical to keeping the country’s economy steady.
Data revealed that approval items at the central government level have been reduced 90 percent since 2013, and the sampled service time has also been shortened by more than 90 percent.
In many cases, it looks like domestic and foreign enterprises are treated equally during registration, but in fact they have to undergo different processes that require many licenses, said the Premier.
These are barriers that will inevitably impede efforts to attract investments, and thus should be removed as soon as possible, he said.
The Premier urged related departments to be proactive in simplifying administrative approval, combine separate business licenses into one and relax restrictions on social investments.
Amid a new industrial revolution, more industries and business models are emerging, creating opportunities for investments, he said.
The government should have an inclusive attitude towards supervision while simplifying administrative approval and improving services to leave room for emerging sectors, said the Premier.
Premier Li stressed the role of private investment in maintaining sustainability in the investment sector. He is requiring that related departments to further optimize in-process and post-process supervision and administrative services, especially for private investment.
He added that domestic and foreign enterprises registered in China should receive the same treatment.
Premier Li also pointed out that China faces both opportunities and challenges with rising competition and profound changes in global society.
“All departments should reinforce their efforts to stimulate market vitality through tackling issues related to foreign investment, in an effort to better attract foreign capital,” said the Premier.
Premier Li emphasized that, despite the great contribution of consumption to China’s economic growth in 2016, effective investment is still indispensable.
To advance effective investment, related departments should promote public-private partnerships (PPP) by performing their respective responsibilities decided at State Council executive meetings, said Premier Li.
The decision was made at the July 5 meeting to use more high quality assets to introduce various types of investment through PPP. The returns will then be invested in new infrastructure construction and public utilities to further achieve sustainable growth.
Premier Li urged that all departments should issue favorable policies to speed up system reform in the investment and financial sector and boost enthusiasm of entrepreneurship and innovation, which will enhance China’s national competitiveness and development.