Amid cutthroat competition, China’s economic planner takes aim at how government-backed investment funds are being spent, especially in crowded industries
China’s top economic planner has unveiled new draft guidelines aimed at tightening oversight of government-backed investment funds, urging a sharper focus on advanced manufacturing and strategic emerging industries.
The warning against overlapping investments marks the latest push to rein in redundant spending that has intensified cutthroat competition and added to deflationary pressure – a key concern for policymakers seeking to steer capital toward high-impact, innovation-driven sectors.
On Wednesday, the National Development and Reform Commission (NDRC) released two draft documents for public comment, laying out guidance on how government funds should be deployed and evaluated.
The new rules call for stronger top-down planning, better coordination between central and local funds, and a sharper focus on key industries such as advanced manufacturing, future tech and the digital economy.
