China's cabinet said Thursday that inspectors had been dispatched to seven provinces and municipalities that reported huge but markedly slowed private investment.
The inspection teams consist of officials from the National Development and Reform Commission and other relevant departments, according to a notice from the State Council.
The regions to be inspected are Beijing, Liaoning, Anhui, Shandong, Henan, Hubei and Qinghai.
China saw fixed-asset investment by the private sector increase 2.8 percent in the first half of the year, down from 3.9 percent in the first five months and 5.7 percent in the first quarter.
A State Council executive meeting last month revealed that during official surveys in May some local governments were found to have failed to fully implement the pro-private investment measures.
Private firms were treated unfavorably, having difficulty raising funds and suffering from heavy financial burdens, according to the surveys.
The inspection will identify outstanding problems and push local governments to take effective measures to support private investment, the State Council said Thursday.
Authorities should improve government services, widen market access and create a level playing field for private investors.
The private sector generates about 60 percent of China's GDP and around 80 percent of jobs. Private fixed-asset investment accounts for more than 60 percent of the total.