On Tuesday, 11th November, a government official announced China’s plan to enhance policy support aimed at attracting more private investment in the energy sector, part of broader efforts to invigorate sluggish private investment. This initiative follows the unveiling of new measures by China’s cabinet on Monday, which focused on fostering private capital in infrastructure projects and low-altitude aviation services.
Xu Xin, deputy head of the legal affairs department at the National Energy Administration, highlighted the government’s commitment to strengthening policy support specifically for the energy sector. Recent initiatives aim to assist struggling private firms amid challenges such as trade tensions, weak domestic consumption, and a downturn in the property market.
The government intends to boost private investment in major areas like nuclear power, hydropower, and cross-regional power transmission projects, with detailed assessments of shareholding structures being undertaken. Previously, high-quality private companies have successfully invested in notable hydropower projects, enhancing the energy landscape.
State approval will be required for projects in critical sectors such as oil and gas pipelines and LNG import storage facilities, but private shareholdings could exceed 10% under new guidelines. Additionally, private firms are now permitted to hold up to 20% stakes in some key nuclear power initiatives.
To further encourage private capital participation, China plans to meet the reasonable credit needs of private enterprises and implement “green channel” policies for stock listings and tech-focused mergers and acquisitions. Despite an overall decline of 3.1% in private fixed-asset investment over the first nine months of this year, state-sector investment rose by 1.0%, reflecting the ongoing disparity in investment dynamics.