State Council says projects to bolster country's consumption and create jobs

China will support private investment and move forward projects that have multiple effects in its effort to spur effective investment, consumption and employment, the State Council's executive meeting chaired by Premier Li Keqiang decided on Wednesday.

The meeting highlighted the need to stay committed to ensuring stable growth at the current stage, and pursue long-term goals for sustained and sound economic development. Stronger policy measures will be taken as needed to stabilize economic activity, without resorting to excessive funding or compromising long-term economic interests.

The meeting pointed out that efforts to expand effective investment should prioritize projects that will not only strengthen areas of weakness and facilitate structural adjustments, but also boost consumption and create jobs.

As the private sector contributes more than half of the investment, it is important to work to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector. Market-based and reform measures will be taken to spur private investment.

"The economic situation remains serious and complex. For China, steady growth is of vital importance. The government must not just focus on one aspect of work. We need to design our policies in a way that meets various challenges at the same time, efficiently coordinate all resources to form synergy, and strive to deliver multiple effects with one policy," Li said.

"Effective investment should be fully leveraged to maintain steady growth and boost employment, and private investment and the building of underground multipurpose utility tunnels are two important levers."

Demonstration projects to attract private investment will be selected from the 102 major programs set out in the 14th Five-year Plan (2021-25) and in identified key areas for development. Approved transportation, water resources management and other projects must be expedited, and private investment will receive equal treatment in bidding.

Financial institutions will be guided toward supporting project development through refinancing or loan renewals. Eligible projects will receive guarantee of financing from the government. Real estate investment trusts, or REITs, projects will be swiftly launched.

"More forceful and effective measures should be adopted to strengthen confidence and anchor expectations. Support will be given to projects with private investment in accordance with laws and regulations," Li said.

Construction of underground multipurpose utility tunnels has great investment potential and can play a catalytic role since the typical project will deliver multiple benefits. Construction of underground multipurpose utility tunnels will be advanced along with the renovation of dilapidated urban drainage networks.

Well-calibrated planning will be made, policy support stepped up and fee-based mechanisms improved to attract private investment. Financial institutions will be guided toward issuing long-term loans.

"Underground utility tunnels are about what's on the inside of a city, and they must be well-planned in the process of new urbanization. Best practices in this respect should be disseminated, and more funds could be mobilized by supporting the participation of private investment," Li said.