PRIVATE CAPITAL TO BE VITALIZED

In a meeting with the premier, leaders of democratic parties, people without party affiliation and representative of national industrial and commercial associations, advised on reforming the country's taxation, administrative management, income distribution systems and introducing reforms to monopoly industries.

Zhou Tienong, chairman of the Revolutionary Committee of the Chinese Kuomintang, said at the meeting that lagging reform of the country's monopoly industries has caused unfair competition in the market and impeded the drive to restructure the economy.

Describing reform on monopoly industries as "an important task," Wen said private capital will be encouraged into sectors of finance, energy, transport and social services.

He said the investment of private capital in such sectors would not only help ease overall economic difficulty, but accelerate the development of the sectors.

According to the premier, the government will draw up details relaxing the current investment restrictions for those industries in the first half of the year.

Ye Tan, a noted financial columnist, proposed at one of the meetings that the government introduce private funds to ease the current investment squeeze in railway construction.

Wen said investment in railway construction will mainly be covered by state capital and funds raised through treasury-guaranteed bonds issuance, but private capital will be introduced in an orderly way after careful planning.

To respond to economic difficulty this year, the government will further support the real economy, small and micro-sized enterprises in particular, he said.

The premier also listened to opinions on development of private colleges, agricultural modernization, schoolbus safety and social management.