China's State Council has issued a circular urging local governments and state ministries to encourage private investment.
The circular came after a survey found problems related to local administrations in promoting private investment. The circular asks provincial level governments and state ministries to reflect on themselves and improve their functions. It also urges them to streamline approval procedures, improve access to capital markets and lower the financial burdens for private companies.
In the meanwhile, a supervision group led by China's National Development and Reform Commission will visit key provinces in mid-July. China's private sector contributes 60 percent to the country's economy and hires 80 percent of the labour force.