China is accelerating private sector involvement in its strategic infrastructure, signaling a shift toward a more open and structured investment landscape. The State Council recently approved five nuclear power projects, allowing private investors to hold up to 10% equity for the first time. Authorities are also actively encouraging private participation in rail, energy, water conservancy, and other major infrastructure projects.

The newly approved nuclear projects, including Jiangsu Xuwei Phase I, remain majority state-controlled, yet ten private firms have collectively invested RMB 4.5 billion ($620 million) as project equity, expected to mobilize more than RMB 24 billion ($3.3 billion) in additional private funding.

“Civil nuclear projects are the backbone of energy security and long-term economic stability,” said Wu Youhong, Research Fellow at the Institute for Investment Research, Chinese Academy of Macroeconomic Research. “While private stakes have existed before—Geely held a 2% share in Zhejiang San’ao Phase I in 2020—the new policies significantly expand the room for private capital, reflecting the state’s resolve to integrate private enterprises into national strategic projects.”

Private firms are seizing the opportunity. Xu Zhixin, Vice President of Liaoning Fangda Group, a diversified conglomerate active in carbon, steel, pharmaceuticals, commerce, and aviation, noted, “Our products already serve sectors like nuclear and aerospace. Policy support now allows companies like ours to play a more active role in shaping and benefiting from major national projects.”

Rail infrastructure is also opening to private investment. On September 6, the privately controlled Hangzhou-Wenzhou high-speed railway—the country’s second—began operations. Officials signal that more private capital will be welcomed for both construction and operational phases of future railway projects.

Legislative drafts, including the Private Economy Promotion Law (Draft for Public Comment), underscore aligning private investment with national strategic priorities and fostering fair competition. “Competitive segments of traditionally monopolistic industries—energy, telecommunications, water, and public utilities—are increasingly accessible to private players,” Wu noted. “This allows private enterprises to optimize their industrial layout, capture growth dividends, and actively participate in high-value projects.”

Established infrastructure companies welcome the changes. SuShang Group, a veteran in transport, municipal, and water projects, sees expanded opportunity. Chairman Yan Xin said, “Removing institutional barriers allows private firms to compete fairly. We aim to strengthen capabilities and services while contributing to urban modernization and large-scale infrastructure development.”

Emerging sectors are also benefiting. Blue Arrow Space Technology, China’s only private rocket company to reach orbit with a domestically developed liquid engine, highlights new opportunities in aerospace. Party Secretary Tian Yaosi remarked, “Policy adjustments are opening doors for private firms to engage more actively in commercial space projects.”

The National Development and Reform Commission (NDRC) is creating long-term mechanisms to sustain private engagement. A senior NDRC official said, “We aim to ensure private enterprises can enter, operate, and thrive in major projects, enhancing the vitality of the private economy.”

A November 10 notice from the General Office of the State Council further clarifies that private capital is encouraged in projects requiring departmental approvals, with clearly defined shareholding ratios and expected returns. The notice also promotes private participation in urban infrastructure, service sectors, SME digital empowerment, and infrastructure REIT issuance.

Ma Shuang, Professor at the University of International Business and Economics, commented, “These measures directly address private enterprises' concerns, expanding access, removing bottlenecks, and strengthening guarantees. They are designed to unlock new growth pathways for private investment.”

For international investors and global infrastructure firms, the reforms signal clearer avenues for co-investment, joint ventures, and supply-chain partnerships in projects with long-term stability and high potential returns across nuclear, rail, energy, and emerging technology sectors.