China will allow private investment in 80 projects spanning the energy, information and infrastructure sectors as part of reforms to increase privatization, Premier Li Keqiang said on Wednesday.
The 80 projects involving solar energy, hydro power, wind power, and oil and gas pipelines, previously areas monopolized by the state, will be open to public tender, Li said.
In future, other sectors such as utilities, airports and oil and gas exploration will also be open to more private investment, he told a weekly cabinet meeting.
His comments were posted on a government website and no further details were provided.
Allowing more private investment in China’s centrally planned economy is part of government’s plans to reduce state intervention and let market forces play a bigger role in the world’s second-biggest economy.
Investment by state-owned companies and provincial and city governments, which have combined outstanding debt of $3 trillion as of June last year, have been criticized by some analysts for being inefficient.
via Reuters
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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