China incentivizes local govts on reforms

BEIJING -- Local governments will receive incentives and fiscal support for implementing reforms and policies to support growth, officials announced at a State Council Information Office press conference Friday.

Currently, there are 24 incentive measures, focusing on sectors including capacity cuts, private investment and social welfare.

Li Pumin, secretary general of the National Development and Reform Commission, said that the central budget will earmark 2 billion yuan ($290 million) to support projects strengthening weak business links and benefiting people's livelihood.

Officials from the Ministry of Finance and the Ministry of Land and Resources also introduced incentive measures.

China is cutting overcapacity, reducing inventory, deleveraging, lowering costs and strengthening weak links as part of supply-side structural reform that began in 2015.

In November 2016, the central government told local authorities to implement reforms and policies to support growth and improve people's livelihoods.

It said positive results have been achieved in economic growth and supply-side structural reforms in 2016, but problems still remain.

Officials should focus on effective implementation of policies, instead of paperwork, the central government added.