China's private sector aims to revamp manufacturing sector

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China wants its private sector to play a larger role in the country's pursuit of high-end manufacturing, with fiscal support and “innovative financing” to support private capital in gearing towards greener development.

A guideline, jointly released by 16 government departments including the Ministry of Industry and Information Technology Monday plans to clear obstacles hampering private investment, taking strides to move private firms up the value chain and revamp the manufacturing sector.

Policies include encouraging the private sector to participate in industries projects formerly dominated by state-held giants, such as telecommunications and military use products.

Also promising greater support for private firms engaged in intelligent manufacturing and key manufacturing components, the ministries vow boost an all-round level playing field for private companies, from patent protection, taxes, insurance, financing and better access to infrastructure and technical instruments.

The guidelines are aimed at reversing lagging private investment in the manufacturing sector, and tap into their resources to meet the goals laid out in the "Made in China 2025" initiative, remodeling manufacturing be innovation-driven, and emphasize quality over quantity.

They pledge to ramp up support for private firms in areas of manufacturing that are particularly weak and vulnerable, while encouraging more private involvement in transforming traditional industries via the “Internet plus” model.

China is pushing its industries to move towards the medium-high end of the global value chain. In the first 10 months of this year, private fixed-asset investment into the manufacturing sector rose by 4.1 percent year-on-year.

The private sector contributes more than 60 percent of China's GDP growth and provides over 80 percent of jobs.