China’s government has announced plans to break down investment barriers and promote access to infrastructure for private companies, in a bid to ease difficulties faced by the country’s growing private sector.
According to Zheng Bei, deputy head of the National Development and Reform Commission (NDRC), China will revise its negative list for market access, which restricts investment in certain sectors. The move aims to increase openness and fairness in infrastructure development in competitive sectors.
The announcement comes as Chinese President Xi Jinping held a meeting with top business leaders on Monday, urging them to “show their talent” and be confident in the country’s model and market.
Xi’s comments reflected policymakers’ concerns about a slowdown in growth and efforts by the US to limit China’s technological development. The move is seen as an attempt to boost private sector sentiment and reposition the private sector as a pillar of national competitiveness amid economic and geopolitical headwinds.
The private sector contributes significantly to China’s economy, with state-owned companies, but private enterprises generate more than half of tax revenue and over 60% of economic output. The government’s efforts aim to further encourage entrepreneurship and innovation, particularly in traditional industries.
While the announcement is seen as a positive step, analysts note that China still needs to address consumption-centric reform and stimulus to sustain corporate confidence.
Source: https://www.reuters.com/world/china/chinas-current-environment-conducive-private-economy-state-planner-says-2025-02-18