The key to the entry of private capital into the railway energy sector is the implementation

The National Development and Reform Commission pointed out on December 17 that next year it will enhance residents' spending power, actively foster consumption hot spots, and promote the continuous growth of consumer demand. In particular, it pointed out that it is necessary to step up the improvement of supporting measures and implementation details to support private investment in railways, municipalities, finance, energy, and social undertakings.

In May 2010, the State Council promulgated and implemented "Several Opinions on Encouraging and Guiding the Healthy Development of Private Investment." This document, known as the "new 36 article," is widely recognized as a milestone in China's strategic adjustment of its economic structure and encouraging private capital to enter monopolistic industries. However, judging from the current situation, the implementation of the "new 36" is not satisfactory. It has been reported that at present private capital is still difficult to break the wall of monopoly industries, especially the social, financial, railway, energy and municipal public utilities, which are widely concerned by the society.

In response, the National Development and Reform Commission proposed to improve the supporting measures and implementation details, and support private investment in railway, municipal, financial, energy, social and other fields. Once again, broadening the field of private investment on the agenda is worth looking forward to. The author hopes that private investment will make breakthroughs in breaking the monopoly and improving the competitiveness of railways, municipalities, finance, energy, and social undertakings.

The improvement of private investment supporting measures and implementation details has increased the scope for private investment options, and it can provide a diversion and guidance role for private capital that lacks investment channels. Avoid private capital concentration in narrow investment areas such as housing, stocks, and speculative businesses. Can also activate the enthusiasm of private entrepreneurship, to make up for lack of government investment. Moreover, the entry of private capital into monopolistic industries is conducive to activating market competition, helping monopoly enterprises to improve efficiency, reduce costs, and relying on market forces to gradually break the monopoly of enterprises that are monopolized by enterprises.

In my opinion, to encourage non-government investment, besides opening up the investment field, and turning macroeconomic policies into implementation details, the key lies in activating competition and let private capital make a difference in investment. Rewrite the old Huangli calendar where the private capital of certain industries does not exceed 49%. Not only formally seen in some investment areas of civilian capital.

In addition to being squeezed by state-owned enterprises' “giants”, private enterprises have encountered the problems of having functional departments to take cards and collect fees and arbitrary charges. The privately-held company that was previously exposed was a typical example of the "Drinking and Diary of the Guest". The Loudi City Commission for Discipline Inspection in Hunan found that the gift diary was basically true, and a total of 38 persons involved were identified. However, after the intervention of the Disciplinary Committee, not only did most of the involved persons fail to be dealt with, but the whistleblowers were hit and retaliated everywhere. There are also cadres claiming: “The current social environment is like this, gifts cannot be avoided.” This can be seen by the unspoken rules of food and drink.

Perfecting the supporting measures and implementation details for the private capital to enter the railway and energy industries has brought a new round of development opportunities for the development of private enterprises. However, private capital must break through the wall of monopoly and truly enter the spring of development, pending the implementation of follow-up policies. Relevant departments should improve the implementation of policies, take more actions to protect private investment, activate private investment enthusiasm, and help private enterprises develop and expand.