In a recent State Council executive meeting, Premier Li Keqiang spent considerable time in discussing the lack of private investment and revealed the government's plan to send inspectors to check whether government policies favoring private investment are being implemented by local authorities. This highlights the severity of the issue and China should introduce more practical measures to address the falling private investment.

ANBOUND’s research team is of the view that in addition to the overall economic downturn, the main reasons attributable to the decline in private investments include the overall status of private enterprises which is not high and the less favorable business environment in China.

In order to unleash market vitality and drive the country’s economic development, the government should be effective in promoting market-oriented reform and streamlining the administration as well as building an orderly market competition, protected by fair and reasonable law.

Ultimately, the economic reform in China depends on marketization.