Premier Li Keqiang sees immediate need to boost private investments in China. (Photo : Getty Images)
Premier Li Keqiang recently urged private as well as semi-public businesses to invest in government's key projects that are part of the 13th Five-Year Plan period (2016 -2020), China Daily reported.
Li also ensured that the investors will be protected in terms of their interests and legitimate rights.
On a Monday meeting in Beijing with State Council department and provincial officials, the premier noted that the government should "innovate methods to attract 'social investment' to [their] projects."
Li's statement comes after the slowing growth momentum of China's private investments continues.
Officials claim that this slowdown was greatly affected by the "sluggish world economy, downward domestic pressure and overcapacity in some industries," China Daily wrote.
Data shows that for the first half of 2016, private fixed-asset investment has slowed to record low growth of 2.8 percent coming from a double-digt statistic last year.
This kind of investment accounts to over 60 percent of China's total investment.
Li emphasized that should this trend continue, it may hinder the country from reaching its target range of economic growth for this year--6.5 percent to 7 percent.
As a solution, the premier particularly noted that the public-private partnership financing mode should be enhanced and promoted. He said that this may help secure more social funds for China's education, medical care and infrastructure projects among others.
"While making use of the government funds, which are limited in amount, we must enhance the guidance of the flow of social funds," he said.
Li also pointed out that the concerted effort of the public and private sectors is needed to prevent funds from flowing into sectors that pollute the environment or that are already experiencing overcapacity.
Commenting on the private sector's access to some sectors, Li shared that market entrance barriers must also be removed and discrimination must be eliminated.
The premier further encouraged governments to repay their debts to private firms to establish good rapport.
