China to ease sector access to boost investment

China’s government will lower the threshold of access in some industries to spike investment amid the sluggish economy, China’s cabinet the State Council announced this week.

It released a guideline after a weekly meeting, saying: “[The central government] aims to break industrial monopolies, reduce market barriers and lower the access threshold.”

Private investment “is further encouraged” in certain sectors to stabilise economic growth, said the state council. China’s economic growth slowed to 7.3 percent in this year’s third quarter, the slowest pace since the January-March period of 2009.

Environmental protection, agriculture, water projects, municipal infrastructure, transport, telecommunications and community services such as housing for the elderly are seven specific areas listed by the council to encourage more private investment.

The government will provide “innovative financial incentives” including subsidies or loans, the guideline said, adding the administration will also promote public-private partnerships.

In a separate statement, the State Council said this week it will “quicken the development of the service outsourcing sector to make [China] competitive in external trade.” More financial support, including tax breaks, will be given to firms to enable them to outsource services such as software, research and development and finance services.