Private investors gain wider access to China’s state-dominated industries

China’s cabinet has unveiled measures to attract private capital into major state-dominated industries, including energy, transport and infrastructure, as Beijing seeks to revive a slowing economy and reassure entrepreneurs of their central role.

The State Council on Monday released a document titled “Several Measures on Further Promoting the Development of Private Investment”. The notice states:

“For key projects in areas including rail and nuclear power that require approval or verification from relevant departments and have a certain level of returns, the participation of private capital is supported and requirements such as shareholding ratios should be clearly defined.”
(Source: State Council of the People’s Republic of China, English.gov.cn, Nov 11 2025)

Private investors are also encouraged to take part in new local urban-infrastructure projects that “have the potential to become profitable”. The government pledged to “remove unreasonable access restrictions for business entities in the services sectors” and strengthen procurement support for small and medium-sized enterprises (SMEs).
(Source: State Council, English.gov.cn, Nov 11 2025)

Broadening access to key industries

The policy marks one of Beijing’s most detailed efforts to lower barriers for private firms in sectors traditionally dominated by state-owned conglomerates.

According to China Global Television Network (CGTN), which cited the official document, the measures call for feasibility studies on private participation in:

• railways, nuclear power and hydropower

• inter-provincial and inter-regional power transmission channels

• oil and gas pipelines

• LNG reception and storage facilities

• water supply systems

“For eligible projects, the shareholding ratio for private capital can exceed 10 percent,” CGTN reported.

The Global Times noted that the measures also cover the “low-altitude economy”—airborne activities under 1,000 metres—and call for “equal treatment” of private companies in commercial space licensing and satellite communications.

The National Development and Reform Commission (NDRC), China’s top economic-planning agency, said the policy aims to “stimulate the vitality of private investment and promote the sector’s development.”
(Source: Xinhua News Agency, Nov 10 2025)

Economic and climate backdrop

The announcement comes amid weak business confidence and deflationary pressure in the world’s second-largest economy. According to official data cited by Xinhua, private firms contribute over 50 percent of China’s tax revenue, 60 percent of its GDP and 80 percent of urban employment.

Analysts say the policy could also intersect with Beijing’s climate and energy transition goals. Allowing private capital into hydropower, grid, and nuclear projects could mobilise investment for low-carbon infrastructure, while inclusion of oil and gas pipelines underscores the government’s continued focus on energy security.

“Private capital participation in large-scale energy infrastructure could help accelerate grid modernisation and renewable integration,” said Li Jun, an independent energy economist in Shanghai. “But without clear green-investment standards, there is also a risk of locking in carbon-intensive assets.”
(Interview conducted by Reuters, Nov 2025)

China has pledged to peak carbon dioxide emissions by around 2030 and achieve carbon neutrality by 2060. Global agencies such as the International Energy Agency (IEA) estimate that global clean-energy investment must triple by 2030 to meet Paris Agreement targets.
(Source: International Energy Agency, World Energy Outlook 2024)

Support for smaller firms

The State Council’s notice directs that at least 40 percent of procurement budgets for government projects be reserved for SMEs and encourages public buyers to increase advance payments to more than 30 percent of contract values
(Source: Global Times, Nov 10 2025)

Economists view the measures as part of a broader effort to stabilise expectations and crowd in non-state capital after years of pandemic disruption and tightening regulation.

“The government is signalling that private enterprise remains crucial,” said Louis Kuijs, chief Asia economist at S&P Global. “Whether new investment materialises will depend on consistent implementation and whether returns are commercially attractive.”
(Interview conducted by Reuters, Nov 2025)

Global context

The policy shift places China alongside other major economies using state-supported incentives to draw private investment into strategic sectors. The United States’ Inflation Reduction Act and the European Union’s Green Deal Industrial Plan have channelled billions of dollars into clean-energy projects. Beijing’s approach, by contrast, emphasises gradual liberalisation within a state-guided framework.

Analysts note that if China pairs its new measures with transparent climate criteria, it could both boost private-sector confidence and enhance the country’s credibility in meeting its 2060 carbon-neutrality target.