State Council, Encouraging, Supporting and Guiding the Development of Non-publicly Owned Economic Sectors such as Family Proprietorship and Private Economic Sectors Several Opinions

Issued: February 24 2005

Main contents: The Opinions comprise seven parts: 1) loosening market access for non-publicly owned entities; 2) giving greater financial and taxation support to non-publicly owned entities; 3) improving social services for non-publicly owned entities; 4) protecting the lawful rights and interests of non-publicly owned enterprises and their employees;
5) guiding non-publicly owned entities to improve their own quality;
6) improving government regulation over non-publicly owned enterprises; and 7) strengthening guidance and policy coordination for the development of non-publicly owned entities.
With market access loosened, non-publicly owned capital is permitted to enter:
1) All industries and sectors not prohibited by laws and regulations. Domestic non-publicly owned capital is permitted to enter industries and sectors where foreign capital is permitted to enter, and the conditions in such aspects as equity proportion limits will be loosened. In areas such as investment verification, financing service, fiscal and taxation policy, land use, foreign trade and economic and technological cooperation, non-publicly owned enterprises shall enjoy the same treatment as enterprises of other types of ownership.
2) Monopolized industries and sectors such as power, telecommunications, railways, civil aviation and oil. Qualified non-publicly owned enterprises are allowed to have equal access to exploration rights and mining rights for mineral resources in accordance with the law.
3) The public utility and infrastructure sector, including investment in, and construction and operation of, water, gas and heat supply, public transport, and sewage treatment.
4) The social and institutional sector, such as investment in non-profit and for-profit education, scientific research, public health, cultural and sports projects.
5) The financial services industry, such as regional share-system banks and cooperative financial institutions. Qualified non-publicly owned enterprises may initiate the establishment of financial intermediaries, and take part in the reorganization and restructuring of banking, securities and insurance institutions.
6) Development of the science and technology industry sector focused on national defence, such as competitions for undertaking military industrial research and production tasks, reorganization and restructuring of military industrial enterprises, and development and industrialization of high technologies for both military and civilian uses.

In a bid to develop mixed ownership involving equity participation of state, collective and non-publicly owned capital, non-publicly owned enterprises are encouraged to participate in the reorganization, restructuring and transformation of state-owned and collective enterprises. Additionally, non-publicly owned entities are encouraged to take part in opening-up projects in western China, old industrial base rejuvenation projects in northeast China, and central China development projects. With regard to improving the government procurement method, non-publicly owned enterprises will enjoy the same treatment in government procurement as other enterprises.