The following regulation, promulgated in 2010, seeks to increase private investors’ role in the Chinese economy. The regulation encourages private investment in strategic emerging industries and virtually every other sector, including even the PRC defense industry, which historically has been a preserve of state-owned enterprises.
The Chinese source text is available online at: https://web.archive.org/web/20201118173441/http://www.gov.cn/zwgk/2010-05/13/content_1605218.htm
US $1 ≈ 7 Chinese Yuan Renminbi (RMB), as of December 16, 2020.
To the people’s governments of all provinces, autonomous regions, and province-level municipalities, and all ministries and commissions of the State Council and their respective agencies:
Since the beginning of reform and opening up [in 1978], China’s private investment (民间投资) has constantly grown stronger, and has become an important force for promoting economic development, adjusting the industrial structure, creating flourishing rural and urban markets, and expanding employment in society. Unwaveringly encouraging, supporting and guiding the development of the non-publicly owned sector (非公有制经济), and further encouraging and channeling private investment, at the same time as we unwaveringly consolidate and develop the publicly owned sector (公有制经济), is conducive to upholding and improving the basic economic system of the initial stage of socialism in China, developing a mixed-ownership sector (混合所有制经济) on the basis of the modern property rights system, and promoting equal competition and common development of the economy across different forms of ownership. It is conducive to refining the socialist market economy system, giving full rein to the market’s fundamental role in allocating resources, and establishing a market environment of fair competition. It is also conducive to stimulating the endogenous dynamics of economic growth, stabilizing the foundation of sustainable development, and promoting faster development with long-term stability; and is conducive to expanding employment, increasing the incomes of residents, boosting domestic consumption, and promoting social harmony and stability. Toward these ends, we submit the following opinions: