Screening out bad assets

The latest official data show that recent positive policies have stimulated domestic investment well. But more needs to be done to promote quality economic growth, says a 21st Century Business Herald editorial.

China's decision-makers have clearly recognized that private investment in China faces problems, such as the complicated procedures involved and uncertain expectations. That's why they have chosen to introduce tax cuts and ease the approval procedures, as well as lowered the market entry threshold for more industries. The influence of these policies will become more evident in the long term.

Currently it is mainly State investment that is easing the pressures resulting from the slowing economy, but in the long run, private investment will undoubtedly play a role that is no less significant.