China Pledges Steps To Halt Slowing Private Investment

China will take measures to halt a slowdown in private-sector investment, the cabinet said on Wednesday, including relaxing market access for private firms.

The cabinet’s announcement came after data showed fixed-asset investment by private firms rose 5.7 percent in the first quarter from a year earlier, slowing from a 10.1 percent rise in 2015.

“Private investment is an important supporting force for stabilizing growth, adjusting structures and promoting employment,” the State Council said in a statement after a regular meeting.

“We must take strong measures to carry out relevant policies, further loosen market access and create a fair business environment to promote an improvement in private investment.”

The cabinet would send inspectors to provinces to check the implementation of recent policies aimed at encouraging social investment, it said.

The cabinet also pledged to open up China’s low-altitude air space, but did not give details.

Authorities simplified flight approval procedures for private aircraft in late 2013, but the fledgling market for helicopters and small aircraft is still constrained by the military’s control of low altitude airspace.

May 4, 2016 on Reuters

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