The Research About The Development Of Private Investment In China

In the recent years, the economy in China has been affected by the world economy. Its export decreased and this reduced the GDP by a larger degree through the multiplying effect. Although the government has increased its expense on internal goods in order to expand the demand and then restore the prosperity, the result is not too satisfying. At this critical moment, the private investment is put forward to undertake the task to develop the economy in China. At first, this thesis retrospects the development of the private investment in the last years and demonstrates its contribution to the economy and points out that the contribution of the private investment to the economy is greater than that of the national investment. In spite of this, there are several problems that exist in the private investment. To solve the problem, the thesis goes into the analysis of the elements that hinder the individual investment, such as market situation, tax barrier, financial barrier and the limit to the entrance to some industries especially pointing out that the unreasonable policies prevent the private investment from freely competing in the market economy. They reduce the whole welfare of the society. At last, this thesis gives several suggestions about how to remove the barriers and solve the problems in order to develop the private investment in China to improve the economical situation.