Research on the Status Quo, Problems and Measures of the Development of China’s PPP Model

Xiujuan  Tan

doi:10.4236/ajibm.2020.102022

Xiujuan Tan

Abstract: China is in the process of rapid urbanization and rapid economic development. The demand for infrastructure construction is getting higher and higher, but government funds are limited and cannot meet its needs. With the decline of government investment in the construction of public infrastructure, and the role of private capital enterprises in the construction of public infrastructure has begun to play an increasingly important role, and the continuous development of marketization of investment and financing models, a new financing model has been introduced—Public-Private-Partnership (PPP) model, that is, the cooperation model between public government departments and private enterprises. At the present stage of the development of China’s PPP model, there are many problems: inadequate legal systems, inadequate supervision and management, insufficient understanding of the PPP model in various regions, inadequate risk taking and benefit distribution, and large government credit risks. In view of this, we should start to improve the legal and regulatory system related to the PPP model, establish a sound supervision and management mechanism, establish a specialized PPP management agency, establish a reasonable risk sharing and benefit sharing mechanism, and establish an information sharing platform. Therefore, this article starts from the deep meaning of the PPP model, the current status of development in China, the problems that arise, and better solutions to study it in depth.

Keywords: PPP Model, Status Quo, Problem, Measures

Cite this paper: Tan, X. (2020) Research on the Status Quo, Problems and Measures of the Development of China’s PPP Model. American Journal of Industrial and Business Management, 10, 344-359. doi: 10.4236/ajibm.2020.102022.

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