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Chinese cabinet said Wednesday it will encourage more private investment in the largely state-owned service industries, with an eye to boost the private service enterprises, the official China News Service reported Wednesday.

The State Council also issued guidelines on further opening the sector, which includes the telecommunications, railway and civil aviation industries, urging relaxed market access and a competition mechanism into the sector.

All service industries, unless banned by law, should be open to social capital, and industries open to foreign investment should also be open to investment, said the guidelines.

The guidelines also called for breaking market segmentation and regional blockade to push for the construction of a "unified, open, competitive and orderly market system, requiring local governments to open its service industry to outside investors.

Fiscal and tax preferential policies, among others, will be carried out to attract investment in companies engaged in rural infrastructure construction and logistics, high-tech software research and development, information technology, and so on, according to the guidelines.

The move is aimed at building an "open, fair, regulated" market access system, the report said.