State promotes public-private partnerships
Updated: 2016-07-09 08:11
By Zhang Yue and Hu Yongqi(China Daily)
|
|||||||||
The Chinese government will intensify efforts to promote more standardized and rapid development of public-private partnerships, especially for projects in the public service sector.
This is also part of the government's effort to encourage private investment across the country.
New measures will be introduced to encourage the partnerships, or PPP, especially for public services, as was decided at the State Council's executive meeting chaired by Premier Li Keqiang on Thursday.
Li said that while the country has seen much progress in promoting PPP in the past two years, a variety of institutional barriers still hinder PPP development.
"We need to work hard to address these problems in PPP promotion, for example, government functions overlapping, and policies and legislations not yet ready. Only by solving them can we drive investment more effectively," Li said.
Taxation policy will be tailored to better suit the financing system of PPP. The meeting also calls for solid research prior to PPP projects implementation.
The premier raised the idea of PPP development at a State Council's executive meeting in October 2014, suggesting that doors should be open to social capital, especially private capital, in more areas.
China's private investment growth has been slowing for the first half of the year, triggering concerns from central government departments. The State Council has just finished a sweeping examination of the reasons for such a slowdown across the country from May to June. It was noticed that many private companies are reluctant to join PPP projects for fear that their interests will be affected.
"At the moment, private investment is slipping, and PPP will serve substantially in driving private business development," Li said.
Another issue with PPP in China is the potential imbalance in market access of State-owned enterprises and private investors. Local governments tend to work with SOEs rather than private investors.
This leads to the pressing demand for regulations to shore up PPP development, which was also discussed at Thursday's meeting.
In June, The Ministry of Finance announced that procedures of PPP legislation have begun, and a draft has been circulated around the departments concerned for consultation.
Li urged accelerating PPP legislation with clear accountability.
This year has seen more than 600 PPP projects implemented, 23.8 percent of the signed PPP contracts. According to the Ministry of Finance, 39 percent of them have private business partners.
Facing such pressure of economic slowdown, policies such as administrative streamlining, expanded market access and favorable taxation may help boost private investment, said Wang Manchuan, secretary-general of the China Society of Administrative Reform.
"However, the government must let private business earn what their investment should make to ensure their interests. That's one of the keys to enhance private investment," Wang added.
Contact the writers at zhangyue@chinadaily.com.cn and huyongqi@chinadaily.com.cn
- Eid al-Fitr celebrated worldwide
- Swedish PM looking at tightening laws after festival sex attacks
- British PM race cut to 3 hopefuls as 2 contenders exit contest
- Chinese herbalists offer free US treatment
- Obama praises Hillary's judgement hours after FBI's censure
- Rio mayor tells Olympic visitors: 'Don't expect New York or London'
- Griezmann scores twice to lift France into Euro final
- Life goes on in flooded Wuhan
- Paper cutouts offer a new view of world landmarks
- Animals occupy Shanghai
- Beijing Muslims mark end of Ramadan
- Remember emerging heroes in China's floods
- Ronaldo powers Portugal into Euro 2016 final
- Culture Insider: Six things you may not know about Minor Heat
Most Viewed
Editor's Picks
Anti-graft campaign targets poverty relief |
Cherry blossom signal arrival of spring |
In pictures: Destroying fake and shoddy products |
China's southernmost city to plant 500,000 trees |
Cavers make rare finds in Guangxi expedition |
Cutting hair for Longtaitou Festival |
Today's Top News
Ministry slams US-Korean THAAD deployment
Two police officers shot at protest in Dallas
Abe's blame game reveals his policies failing to get results
Ending wildlife trafficking must be policy priority in Asia
Effects of supply-side reform take time to be seen
Chinese State Councilor Yang Jiechi to meet Kerry
Chinese stocks surge on back of MSCI rumors
Liang avoids jail in shooting death
US Weekly
Geared to go |
The place to be |