China offers $318 bn of projects to private investors to drive growth
25 May 2015
China is finding investment avenues for private businesses and the state planning agency has unveiled a list of over 1,000 projects, worth 1.97 trillion yuan ($318 billion), which include construction of residential buildings, bridges and water conservation works, for private sector participation as the country looks more inwards for growth.
The National Development and Reform Commission (NDRC), China's top economic planning body, on Monday said about 1,043 projects, in sectors such as construction, transport, water conservancy and public services, will be implemented under public-private partnerships (PPP).
The NRDC list includes projects planned for 29 regions, including capital Beijing and southeastern Jiangxi province.
"The publication of this library of PPP projects is to help speed up the adoption of the PPP model, and to encourage and guide social capital into the provinces, autonomous regions and municipalities," the NDRC said.
The lists include contact details of a 51.9 billion yuan project to build two subway lines in the eastern city of Hangzhou, and a 6.4 billion yuan hospital in Urumqi, the capital of Xinjiang.
China is looking at the PPP model because of a widening funding gap amidst changes in borrowing procedures that could worsen an economic slowdown from the break-neck double-digit growth the economy had witnessed over the past several years.
At the same time, China is looking for investment opportunities in other developing economies, including India as local investment stagnates.
Chinese authorities are implementing the most sweeping economic-policy changes since the 1990s as the country tries to sustain growth close to a target of 7 per cent this year.
NDRC had, early last week, announced to setting up of a new investment company, with initial capital of $5 billion, to help domestic enterprises invest abroad and encourage the export of the country's industrial capacity.
Besides, China has set up a Silk Road Fund, an infrastructure-oriented fund that looks to boost the country's access all across Asia and beyond.
China is striving to extend its economic influence deeper into neighbouring economies such as Pakistan and India to grow its industrial capacity further.
The National Development and Reform Commission is the biggest and most powerful Chinese agency that is responsible for directing growth of China's $8.5 trillion economy.