After foreign direct investment has been hit by the global economic slowdown, the PRC State Council issued the Several Opinions on Encouraging and Guiding the Sound Development of Private Investment (the “Private Investment Opinions”) aimed at broadening the permissible investment scope of domestic private capital.  

Private capital plays a critical role in the growth of the national economy. Although the State Council promulgated the Several Opinions on Encouraging, Supporting and Guiding the Development of Individual and Private Economy and Other Non-Public Economy in 2005, it failed to attract private capital out of their traditional industries such as manufacturing, trading, distribution, catering, and service.

Pursuant to the Private Investment Opinions, the government will encourage and guide private capital to invest in industries and industry sectors not prohibited by law, ranging from infrastructure development, public utilities, social undertakings, finance service, trade and distribution, to national defense technology and reform of state-owned enterprises.  

The Private Investment Opinions require local governments to follow up with implementing rules to support the development of private capital.

- Several Opinions on Encouraging and Guiding the Sound Development of Private Investment

- Issuing Authority: the State Council

- Date of Issuance: May 7, 2010 / Effective Date: May 7, 2010