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Govt and policies

Hurdles remain for private investment

Although China's private sector is picking up, multiple hurdles remain for private investment, and more efforts are needed to create a good business environment, a report showed. While policy changes have increased confidence among private businesses, they still have difficulties with entry qualifications in some industries including the electricity and defense sectors, according to a report by the Chinese Academy of Governance. High land and labor costs, as well as financing troubles are among the major obstacles for private investment, the report said, laying some of the blame on poor policy implementation. Since the 1980s, private businesses have played a bigger role and currently account for more than 60 percent of GDP growth, and provide over 80 percent of employment. The sector has recently become less vibrant due to external factors and high costs, entry restrictions and financing difficulties. The report suggests better protection for the intellectural property rights of private businesses, opening up more industries and reduced financial burdens as ways forward.