China is seeking opinions for a draft public-private partnership (PPP) law to attract private investment to carry out infrastructure projects in the country, state media reported on Friday.

Enhancing private investment could help local authorities alleviate their debt situation and attract support for more projects. According to sources, deficient legislation is the biggest barrier for the implementation of PPP projects.

Although the number of PPP projects in infrastructure projects has increased in the last months, this new law is expected to mark a milestone for future PPP projects. China's cabinet has already received a draft of the proposed law. 

On 1 June 2015, China implemented the Administrative Measures on Concession for Infrastructure and Public Utilities. The Measures were a significant step in enhancing the PPP model in China. The Measures seek to provide a fundamental regulatory framework for private investors participating in infrastructure and public utilities projects.

The Measures allow concessionaires to be entities either incorporated in China or outside of China, it seems that foreign investors do not need to incorporate a local entity for market entry. However, in practice, foreign companies have difficulties in acquiring land rights certificates, importing project equipment, and taxation issues.