Reform imperative to engage private firms in national projects

The top authorities have unequivocally said that China will improve the long-term mechanism for private enterprises to participate in major national infrastructure projects.

In recent years, private enterprises have actually participated in the construction of China's high-speed railways, nuclear power plants, oil and gas pipelines, and other major projects. However, major national projects are for public welfare and require huge investments. This affects private enterprises' expectations and confidence on whether long-term stable returns can be obtained from their investment. At the same time, the arduous construction of some projects and high operation and management requirements also dampen the investment enthusiasm of private enterprises in these areas.

Supporting private enterprises' participation in major national projects shows the country's determination to promote the growth of the private economy and the high-quality development of private enterprises. Given that private investment is more flexible and values efficiency, its participation in major national projects can help broaden the medium- and long-term investment channels for private capital and boost the confidence of private enterprises. In this process, private enterprises can also play a role in stabilizing economic growth and employment.