Chinese authorities issued a regulation on Monday that includes 14 measures outlining the allocation of government investment funds to support the country's major strategies, key areas, and weak links where the market is unable to effectively allocate resources.
This is the first state-level systematic regulation of its kind. It was jointly released by the National Development and Reform Commission, the Ministry of Finance, the Ministry of Science and Technology, and the Ministry of Industry and Information Technology.
Government funds designated under the regulation must not go to restricted, eliminated industries or those explicitly prohibited by policies. The measures say national-level funds should support breakthroughs in key core technologies, emphasizing the need to address industrial weaknesses and development bottlenecks.
Local funds are directed to select investment directions in line with local industrial foundations and development realities.
The measures aim at solving the problems of mismatching between local resource endowments and industrial foundations, unclear fund positioning, and homogenization of investment directions during their establishment and operation.
According to government experts, they represent a milestone in standardizing the flow of funding for the optimization of China's high-quality development.
"The regulation is the first policy document jointly issued by relevant departments of the State Council regarding the planning and layout of government investment funds. It is also the first to put forth clear requirements at the national level for the allocation of these funds. This marks an important shift in China's management of government investment funds from extensive management to refined management. Additionally, it promotes a transition in the development of government investment funds from focusing on the quantity and scale of investments to emphasizing quality and effectiveness," said Zhao Huaiyong, director of the Department of Finance, Banking and Credit Construction at the National Development and Reform Commission.
China issues landmark regulation on allocation of government investment funds
China's 15th Five-Year Plan proposal sends a strong signal of the country's commitment to upholding openness and cooperation, which will promote further development for the country and the world, said officials and scholars around the world.
The draft 15th Five-Year Plan, the blueprint that will guide the world's second-largest economy from 2026 to 2030, is central to steer China to move toward modernization amid technological disruption, demographic shifts and an increasingly fractured global order, according to the scholars.
"China's 15th Five-Year Plan is not a rigid model; it is more like benchmarks for growth targets and focal points. Chinese economists and economic decision-makers are not just focusing on qualitative growth, but also on innovative development. We're witnessing new transportation methods, robotics and artificial intelligence," said Andrey Denisov, first deputy chair of Russia's Federation Council Committee on Foreign Affairs and former Russian Ambassador to China.
"The 15th Five-Year Plan is of great importance to China's development. The country is poised to make remarkable advancements in various sectors, including artificial intelligence, high-end manufacturing and infrastructure construction. Given the shifting global context and China's transition towards high-quality development, I am confident that this plan will herald a new era for China's development," said Kamel Mansari, news director of the French-language daily Le Jeune Independent.
Scholars also noted that China's commitment to high-quality development and high-level opening-up will promote win-win results and benefit the world.
"China has emerged as a key partner for most countries worldwide, and a preferred partner due to its closeness and integration with global communities, as well as its strong humanitarian perspective. The Chinese economy has not only benefited itself; it has helped many economies worldwide flourish through its partnerships," said Dirgham Muhammad Ali, an Iraqi economic expert.
China's National People's Congress (NPC) is scheduled to open in Beijing on Wednesday, with lawmakers set to approve the 15th Five-Year Plan.
15th Five-Year Plan to guide China's development, benefit world: scholars
