BEIJING: China’s government said on Monday it will launch projects to attract private investment in energy, health and other industries as it tries to reverse an economic slump.
The Cabinet announcement adds to a flurry of efforts to stimulate growth that has fallen to a three-year low, raising the threat of job losses and social unrest. The International Monetary Fund said last week China probably has achieved a “soft landing” but warned “global headwinds are increasing” due to Europe’s debt crisis and a weak US recovery.
Beijing said previously that boosting private sector investment is a key part of its recovery plan but there is no sign struggling entrepreneurs are willing to spend. Some private businesspeople say monthly sales have fallen by up to 50 per cent in recent months.