China's central government eyes improvement of investment in the private sector. (Photo : Getty Images)
China is sending supervisory teams all over the country to determine why the investments in private sector have significantly slowed.
Teams will be sent to different regions of China on fact-finding missions where they will be assessing each area's private sector in order to help policymakers determine how to bring the Chinese economy to its former glory.
According to the South China Morning Post, such move is the latest of the government's actions to revive the country's sickly economy.
The central government has set Aug. 15 as the deadline for local officials to submit results of their assessment of the private sector under their jurisdiction.
They have also been ordered to make the market fair and impartial to state-owned enterprises in order to give private business a fair chance at earning. The government vowed to make the market "fair, open, and transparent" to all firms, including those in the private sector.
Such moves come weeks after Reuters reported how some private companies decide to downsize their firms instead of expanding them.
"We plan to downsize our business rather than expand. We cannot feel any improvement in the economy," Ningbo Tengsheng Garments Co. operator Bruno Chen told the outlet in May.
Aside from Chen, Wenzhou Kingsdom Sanitary Ware Co. General Manager Xia Xiaokang also expressed his thoughts about the stability of the Chinese economy.
"We have hardly made any fixed-asset investment since last year and we now plan to rent out part of our factory building because it's too big," he said.
According to Reuters, government officials grow worried by the day after the private-sector fixed-asset investment between January and April slowed in growth with only 5.2 percent, per records of the National Bureau of Statistics (NBS).
"Because the total amount of private investment is relatively large, its continued slowdown could restrain stable growth, and requires a high degree of attention," the NBS explained, referring to the overall assessment of the Chinese economy.
