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China promises bigger private role in industry

2010-07-27 11:41

China's Cabinet promised private investors a bigger role in industries from oil drilling to finance, and also promised to help private companies invest more abroad.

The State Council issued an announcement Monday which included a five-page list of areas where the government promised to increase access for private investment. They ranged from building airports, hospitals, schools and water systems to setting up financial institutions.

In energy, private companies will be encouraged to partner with state oil and gas companies to "co-exploit" reserves, the statement said.

Beijing also will support a role for private investors in major science and technology projects, said the statement.

Private companies will be encouraged to invest abroad and regulators will treat every investment entity equally, the statement said. Chinese foreign direct investment has surged in recent years, but much of that is spending by state companies while investment by private entities is low and growing slowly.

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