CRI听力:China Encourages Healthy Development of Private Capital

The National Development and Reform Commission, the country's top economic planner, is drafting new rules that will allow private investment in the heavily state-controlled and monopolized electricity, oil and natural gas sectors.

Experts here in China have been suggesting that private capital investment is important for the transformation of China's strategic industries.

Zhao Xijun, vice-dean of the school of finance at Renmin University, says the development of the Chinese economy is becoming increasingly dependent on non-state cash.

"The size of private capital in China is getting bigger and bigger thanks to the economic growth over the years. So now the industrial sectors that depend on market competition should be open to all kinds of capital. The injection of private capital will help to bring out the potentials of our economy and ensure we have enough capital for investment."

Zhao suggests the government has even more opportunities to move away from state-sponsored growth.

"From an economic perspective, capital investment should be based on the rules of the market. There should be no differentiation between government or non-government, domestic or overseas capital. Meanwhile, the state should be more responsible for sectors that are vital for the national economy and people's livelihood. That aside, the other competitive sectors should be open to all kinds of capital."

The National Development and Reform Commission says its the government's long-term policy to curb over-expansion in certain sectors and discard outdated industries.

Zhao says he believes those who invest in China's economic transformation need to have a long-term outlook.

"For investors, it will be hard to choose and decide. They are always seeking to gain the maximum returns at minimum cost with their capital, and once they can do so, they will not make other choices. But I think they should look ahead and consider the future opportunities offered by industrial transformation, technological breakthroughs and the changes of the market."

The government departments responsible for housing and construction, water resources, the securities market and state-owned assets are also writing new rules aimed at increasing private investment in their sectors.

The National Development and Reform Commission is planning to release a series of rules in the coming weeks which will help it better monitor private investment.

For CRI, I'm Robert Costello.