Private investment remains a core driver of China’s economic activity, reflecting the health of growth, employment, and market expectations. Recent fluctuations, partly driven by shifts in the global environment and adjustments in the domestic real estate market, have slowed overall private investment. However, underlying momentum remains stable, with private investment in non–real estate development projects growing 2.1% year-on-year in the first three quarters. In response to evolving economic pressures, the State Council has issued the Several Measures on Further Promoting the Development of Private Investment, outlining targeted steps to revitalize private capital participation across key sectors.

Executive Summary

• Economic Context: Private investment remains central to growth and employment. While overall investment has slowed due to global uncertainty and the real estate adjustment, non-real-estate private investment grew 2.1% year-on-year in the first three quarters, indicating stable underlying momentum.

• Policy Response: The State Council’s 13 measures to promote private investment focus on expanding market access, removing structural barriers, and strengthening institutional guarantees, with the NDRC coordinating implementation across ministries and regions.

• Sector Opportunities: Policymakers aim to increase private participation in productive services, digital transformation, and energy infrastructure, including support for SME digital upgrading, data-infrastructure development, and clearer rules for private investment in major energy projects.

• Improved Investment Environment: Stronger government–enterprise communication mechanisms, implementation of the Private Economy Promotion Law, and coordinated policy execution are intended to stabilize expectations and improve investor confidence.

• Financing Innovation: Infrastructure REITs are being promoted as a funding channel for private projects, helping activate existing assets, expand capital access, and support reinvestment; 14 private-sector REIT projects have already raised nearly RMB 30 billion.

• Strategic Objective: Together, these measures aim to revitalize private capital participation, support industrial upgrading, and strengthen high-quality economic growth by creating a more predictable and supportive investment environment.

Policy Framework: Expanding Access, Addressing Obstacles, Strengthening Guarantees

The newly released set of 13 measures focuses on expanding market access, removing structural bottlenecks, and improving institutional safeguards for private investment. According to the National Development and Reform Commission (NDRC), these measures form a comprehensive policy package designed to stimulate participation, strengthen investor confidence, and maximize private capital’s contribution to high-quality growth. The NDRC will advance interdepartmental coordination to ensure that the measures are refined, implemented, and monitored effectively at both national and regional levels.

Boosting the Productive Services Sector

The productive services industry plays an essential role in supporting industrial value chains and strengthening the competitiveness of the manufacturing sector. Recognizing its strategic importance, policymakers aim to dismantle unreasonable market-entry barriers and create more opportunities for private sector participation. Efforts include capacity expansion initiatives, quality improvement programs, and pilot reforms that encourage transformation and upgrading. With substantial growth potential projected during the “15th Five-Year Plan” period, the productive services sector is expected to attract increasing volumes of private capital.

Improving Government–Enterprise Communication and Investment Support

The Private Economic Development Bureau under the NDRC continues to play a central role in coordinating communication between government agencies and private enterprises. Regular engagement channels help identify operational challenges, accelerate problem-solving, and enhance the overall investment environment. The bureau will further strengthen the implementation of the Private Economy Promotion Law, reinforce cross-departmental coordination, and ensure that private enterprises have stable and predictable channels to pursue new investment opportunities.

Accelerating Digital Transformation as a New Investment Frontier

Digital transformation remains a major catalyst for new investment demand. The measures encourage leading private enterprises, supply-chain owners, and specialized service providers to build comprehensive digital empowerment platforms and support small and medium-sized enterprises (SMEs) in advancing digital upgrades. According to the National Data Administration, future work will emphasize scaling major digital transformation projects, enhancing data-infrastructure standards, and exploring new service models such as contract-based data transformation, where enterprises and service providers share value generated after digital upgrades. These innovations aim to unlock new growth space and cultivate a vibrant ecosystem of digital service providers.

Expanding Private Participation in the Energy Sector

The energy sector continues to open new avenues for private investment. Earlier this year, the National Energy Administration introduced ten measures to support private enterprises in electricity, nuclear power, hydropower, and large-scale transmission projects. The next stage will focus on refining participation rules, improving long-term mechanisms, and ensuring that private capital can engage in major energy infrastructure projects on a stable and predictable basis. Enhanced policy support is expected to generate broader private-sector involvement in energy modernization and green transformation.

Promoting REITs as a Financing Channel for Private Projects

Infrastructure Real Estate Investment Trusts (REITs) have emerged as a key instrument for activating idle assets and connecting the real economy with capital markets. The latest measures encourage qualified private investment projects to issue infrastructure REITs, helping firms access capital, reduce financing pressure, and reinvest in new projects. To date, the NDRC has recommended 18 private-sector projects, with 14 successfully listed and nearly 30 billion yuan raised. Continued collaboration between the NDRC and financial regulators aims to expand this pipeline while ensuring rigorous risk management and quality standards.

Outlook: Strengthening Confidence and Fostering High-Quality Growth

China’s latest policy initiatives reflect a clear commitment to reinforcing the role of private investment in the national economy. By improving market access, optimizing institutional support, and opening new areas for participation, from digital transformation to infrastructure REITs and energy development, the government aims to cultivate an environment where private capital can grow with greater confidence and predictability. As implementation deepens across regions and industries, these measures are expected to contribute to a more dynamic, resilient, and innovation-driven private sector.