A circular issued by the State Council on February 24 urges the further opening of public utilities, telecommunications, railway, aviation and oil industries to private investors.

　　Despite an increasing emphasis on the importance of the private sector in the economy, the official statement is a clear green light sent by the central government for private capital to enter these industries.

　　According to a Xinhua News Agency report, released in conjunction with the circular, the private sector now accounts for one third of total GDP - the figure was less than 1 percent in 1979. What's more, since the mid 1990s, more than 70 percent of employment opportunities have been provided by the private sector. And more than 70 percent of the labor force that moved from rural areas to cities are employed privately.

　　The private sector has made great strides in the past decade, and some private enterprises have been able to accumulate considerable capital. In this sense, the circular may not only help private enterprises explore investment opportunities, but also ensure potentially huge capital injections into key industries.

　　"Last year was hard for many private enterprises due to macro-economic controls. So, the clear 'go ahead' at the very beginning of the new year is encouragement to explore new territory," said Yin Xingmin, professor at the China Center for Economic Studies at Fudan University.

　　On the other side, according to Chang Xiuze, professor at the Economic Research Institute under the National Development and Reform Commission, the pace of infrastructure construction can't match the country's quick economic development. Private funds are thus essential.

　　Chang added the move is also a good way to grant all investors - state-owned, private, and foreign - equal treatment, which is part of the central government's WTO commitment.

　　The detailed descriptions of how much private capital can be injected in the monopolized industries is just one part of the circular. What is more widely commended is the "what to do" suggestions provided to financial institutions and intermediary agencies to support private investors.

　　Some thus believe the circular will help create a fair and open market. That in turn will lead to consumer benefits and enhanced efficiency.

　　But will it?

　　Although the circular is concrete in terms of its complementary suggestions, before private capital can be invested, there are many regulations waiting to be drafted or modified by various government bodies.

　　For example, the circular proposes a national fund for the development of small and medium-sized enterprises. But it doesn't say what department(s) will be responsible or how the fund will operate.

　　To fully accomplish the circular's goals will require immense inter-governmental coordination. This will take time.

　　"Although the circular comes from the state council, it is just an administrative order," said Yin Xingmin. "Implementation will be a challenge."

　　Although it's too early to know the results of the government's green light, thinking and planning for the future is important.