China opens key energy and infrastructure projects to private investors

China has announced plans to allow greater private investment in major state-led energy and infrastructure projects as part of efforts to boost economic growth and investor confidence. Under a new directive, private investors could hold stakes of more than 10 percent in select projects, marking a significant policy shift.

According to the cabinet, projects eligible for private participation include railway infrastructure, nuclear and hydropower plants, inter-provincial and inter-regional transmission lines, oil and gas pipelines, LNG import and storage terminals, and large-scale water supply projects. Each project will require state approval and undergo feasibility studies to assess revenue potential and investment returns.

The directive encourages private enterprises to take part in these ventures and clarifies that the level of participation will depend on project type, investor interest, and relevant policy guidelines. It is the first time the government has explicitly stated that the cap on private ownership in state-led projects can exceed 10 percent.

“We will further strengthen policy support for attracting private capital into the energy sector,” said Xu Xin, deputy head of the legal affairs department at the National Energy Administration, during a media briefing reported by Reuters.

Guan Peng, an official with the National Development and Reform Commission, told reporters that the policy provides “clear requirements on encouraging and supporting the participation of private capital in key areas and projects,” adding that it “sends a strong signal to promote the development of private investment,” as cited by Bloomberg.

The move builds on China’s earlier steps to revitalize its private sector, which has been under pressure amid slower economic growth and global trade tensions. In May, China enacted its first dedicated law to promote the private economy, a measure the Ministry of Justice described as a “significant step in revitalizing a sector that is key to growth and greatly boosting entrepreneurs’ confidence and expectations.”