News & Insights

China Subsidy Exchange

November 22, 2017

Sixteen Chinese Central Government Agencies Jointly Promote Private Investment

On November 20, 2017, the Ministry of Industry and Information Technology of China (MIIT) published on its website the Guidelines on Exerting the Function of Private Investment and Promoting the Implementation of the Manufacturing Power Strategy (Gong Xin Bu Lian Gui (2017) No. 243) jointly issued by sixteen central government agencies, aiming to revitalize China’s slow-growing private investment. Besides MIIT, other premier central government agencies, such as the National Development and Reform Commission (NDRC), the Ministry of Finance (MOF), and the Ministry of Commerce (MOFCOM), are also among the drafters. The Guidelines encourage private sources of capital to invest in emerging industries such as information technology, Internet, intelligent manufacturing, high-end equipment manufacturing, and telecommunications. As supporting measures, the Guidelines call on the government to provide policy, capital, and financing support to internationally competitive enterprises to explore emerging global markets, cultivate and develop a variety of private investment funds such as equity investment funds and venture funds, utilize the existing industrial transformation and upgrade funds, and implement preferential taxation policies. The Guidelines also encourage financial institutions to develop financial products supporting enterprises to invest abroad.