China to step up efforts to support private investment

China will step up efforts to support private investment and push ahead with multi-purpose projects aimed at further boosting effective investment, consumption and employment, according to a State Council executive meeting chaired by Premier Li Keqiang on Wednesday.

The meeting said that the country will allow medium, small and micro enterprises to defer payments of their contributions to the basic medical insurance, launch initiatives to end unjustified charges levied on businesses, and postpone payments for government administrative charges.

It stressed that efforts should be made to both ensure economic stability in the short term and promote the healthy development of the country's economy in the long run.

While making incremental efforts and adopting all measures to stabilize the economy, China should not resort to excessive money supply, the meeting said.

To expand effective investment, the country should focus on initiating projects that would contribute to strengthening areas of weakness, promoting structural adjustment and boosting consumption and employment, it said.

Noting that private investment accounts for over 50 percent of the country's total, the meeting called for more policy support for the private sector, and adopting market-oriented methods and reforms to stimulate private investment.

The country should select some demonstration projects to attract private investment, protect the legitimate rights and interests of private investment, support the healthy development of the platform economy, and encourage the financial institutions to grant loan renewals and loan repayment deferrals to support private investment, according to the meeting.

To further help market entities relieve pressure and stabilize employment, the meeting decided to allow micro, small and medium-sized enterprises to postpone their payment of basic medical insurance with a scale of around 150 billion yuan (about 22.22 billion U.S. dollars).