Central government set to stimulate private investment

%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20puts%20great%20emphasis%20on%20the%20promotion%20of%20the%20non-public%20sector%20economy%2C%20which%20contributes%20approximately%2060%20percent%20to%20the%20country%27s%20GDP%2C%2080%20percent%20of%20employment%2C%20and%20over%2050%20percent%20of%20total%20revenue%2C%20and%20will%20make%20fresh%20efforts%20to%20boost%20private%20investment%2C%20said%20a%20report%20released%20at%20a%20news%20conference%20of%20the%20State%20Council%20Information%20Office%20on%20Tuesday.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EPrivate%20investment%20registered%20year-on-year%20growth%20rate%20of%205.2%20percent%20in%20the%20first%20four%20months%20of%20this%20year%2C%20about%207.5%20percentage%20points%20less%20than%20in%20the%20same%20period%20of%20last%20year%20and%205.3%20percentage%20points%20less%20than%20the%20overall%20growth%20rate%20in%20social%20investment%2C%20the%20report%20noted.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20response%20to%20the%20recent%20slowdown%20in%20the%20growth%20in%20private%20investment%2C%20the%20State%20Council%2C%20China%27s%20cabinet%2C%20sent%20nine%20ministry-level%20teams%20to%20conduct%20a%2010-day%20field%20inspection%20in%2018%20provincial-level%20regions%20starting%20May%2020%2C%20according%20to%20the%20report.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESluggish%20demand%2C%20unfavorable%20policies%2C%20insufficient%20government%20support%2C%20and%20rising%20labor%20and%20financing%20costs%2C%20have%20caused%20many%20private%20enterprises%20to%20show%20little%20interest%20in%20making%20investments%2C%20said%20Zhang%20Yong%2C%20deputy%20head%20of%20the%20National%20Development%20and%20Reform%20Commission%2C%20at%20Tuesday%27s%20meeting.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20lack%20of%20skills%20is%20also%20responsible%20for%20the%20predicament%20that%20many%20entrepreneurs%20are%20in%2C%22%20he%20added.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAccording%20to%20the%20report%2C%20local%20governments%20have%20made%20several%20successful%20attempts%20to%20stimulate%20private%20investment%2C%20ranging%20from%20the%20promotion%20of%20the%20public-private%20partnership%20approach%20and%20allowing%20more%20private%20capital%20to%20enter%20the%20energy%20and%20infrastructure%20industries%2C%20to%20granting%20college%20students%20easier%20access%20to%20entrepreneurship.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20implementation%20of%20certain%20projects%2C%20however%2C%20has%20failed%20to%20work%20as%20expected%2C%20said%20Vice-Minister%20of%20Finance%20Liu%20Kun.%20%22During%20the%2010-day%20inspection%2C%20some%20private%20companies%20complained%20that%20quality%20PPP%20projects%20are%20basically%20monopolized%20by%20State-owned%20enterprises%2C%20and%20a%20few%20local%20governments%20have%20a%20bad%20credit%20record%20in%20this%20regard%2C%22%20Liu%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ETo%20regain%20the%20confidence%20of%20private%20investors%2C%20Feng%20Fei%2C%20vice-minister%20of%20industry%20and%20information%20technology%2C%20stressed%20the%20need%20to%20create%20a%20climate%20of%20fair%20competition%20in%20which%20private%20investors%20can%20participate%20in%20the%20ongoing%20reform%20and%20mergers%20of%20SOEs.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Governments%20at%20all%20levels%20also%20need%20to%20improve%20their%20service%20for%20private%20companies%20and%20eliminate%20the%20existing%20discrimination%20against%20private%20capital%22%2C%20added%20Feng.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EXia%20Guangyao%2C%20chairman%20of%20Wenzhou%20Jialunte%20Textile%20Finery%20Co%20in%20Zhejiang%20province%2C%20said%20the%20company%20has%20invested%20in%20a%20government-backed%20park%20project%20in%20the%20city.%20Projects%20which%20entail%20the%20concept%20of%20environmental%20protection%20and%20provide%20long-term%20benefits%20to%20local%20residents%20are%20of%20great%20interest%20to%20him.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Even%20though%20privately%20owned%20enterprises%20have%20the%20willingness%20to%20invest%2C%20available%20projects%20are%20quite%20limited.%20The%20most%20important%20issue%20that%20needs%20to%20be%20addressed%2C%20which%20has%20been%20stated%20from%20time%20to%20time%2C%20is%20that%20they%20have%20equal%20treatment%20with%20State-owned%20enterprises%20when%20it%20comes%20to%20the%20same%20project.%20If%20there%20are%20more%20favorable%20conditions%20provided%20concerning%20financing%2C%20I%20think%20our%20willingness%20will%20grow%20accordingly%2C%22%20he%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28China%20Daily%29%3CBR%3E%3C/FONT%3E%3C/P%3E