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      Economy

      China seeks to revitalize private investment

      1
      2016-06-05 09:03Xinhua Editor: Wang Fan

      China will strengthen policy support to rein in an unexpected slowdown in private investment growth.

      China will improve laws, enhance governmental services and build a sound business environment to encourage private investors, said a official report after a month-long survey on hundreds of private firms nationwide.

      Fixed-asset investment by private companies grew by only 5.2 percent year on year during the January-April period, retreating from the 10.1-percent growth last year and triggering concerns on the private sector.

      The State Council dispatched teams comprised of officials, scholars and business elites to investigate into the slowdown.

      The investigation found the private investment is mainly hindered by shrinking market demand, overcapacity, ineffective policy implementation, and high financing and labor costs.

      The government has promised targeted measures to fix those problems.

      China's private sector contributes 60 percent of the GDP, 80 percent of jobs, over half of tax revenues and 46 percent of exports.

        

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