In the midst of the current financial crisis, the relevant departments are revising the Catalogue of Investment Projects Approved by the Government and are considering formulating a policy to bolster investment by private enterprises. However, the policy is still being studied and has not been submitted to the State Council for deliberation.

While the Rmb4 trillion stimulus package launched by the state involves huge investments, economic growth achieved so far is anything but marked. One of the reasons is that some of the investment projects in the plan are not strong enough to drive social investment, with some even creating a negative effect on social investment.

Back in 2005, the Chinese government announced the so-called "36 clauses of non-public economy" which already stated that "non-public capital is allowed to participate in industries and sectors not prohibited by laws and regulations", and that "where investment approval, financing services, fiscal and taxation policies, land use, foreign trade, and economic and technological cooperation are concerned, non-public enterprises and enterprises of other ownership types are on the same footing and will receive equal treatment."

Against the current background of economic downturn, in order to encourage private enterprise investment, a sound industrial policy or good investment direction must be in place and the return must be attractive enough.

It is understood that some local governments have already introduced policies encouraging private enterprise investment.

Meanwhile, the National Development and Reform Commission (NDRC) is in the course of revising the 2004 version of the Catalogue of Investment Projects Approved by the Government. The direction of this round of revision of the catalogue is to delegate the power of approving certain investment projects to local governments, while transferring part of the approval authority to other departments under the State Council.