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China grants more support to local governments with good performance

Updated: Dec 10,2018 8:41 PM

The Chinese government will increase the number of incentive measures to local governments scoring obvious results in implementing major policies from 24 in 2016 to 30, according to a circular released by the State Council on Dec 10.

Compared to the former 24 items, the government added nine incentive measures, removed three and improved the 21 measures that remained.

Those local governments will be given priority treatment on development projects, pilot reforms, and use of funds, according to the circular.

Local governments with remarkable achievements in business reform will be included in related pilot programs first, and those largely promoting foreign trade and foreign investment will be supported with precedence in growing bases for foreign trade transformation and upgrade, the circular said.

Eligible projects in a provincial region, where annual fixed-asset investment retained stable growth and investment projects performed well within the budget of the central government, would be granted certain investment funds within the central budget, the circular stated.

Provinces, autonomous regions and municipalities directly under the central government that performed well in fiscal management will be given incentives to support model cities and counties.

In provincial regions that met the annual target in transportation construction, put in place local investment and rolled out effective measures in bringing in private capital, eligible local transportation construction projects will be placed on top of the three-year rolling plan, according to the circular.

Also, those that performed well in financial risk control, building sound financial order and protecting financial consumers’ rights, will be given support to conduct pilot projects in financial reform, the circular stated.

All departments are asked to put the incentive measures in place and improve assessment of local governments’ work in inspection. Local governments that win praise are required to build a work mechanism to implement those incentive measures, according to the circular.