National Development and Reform Commission- Most of the nearly 6 trillion yuan of government investment this year has been implemented in specific projects

On October 8, Liu Su, the Deputy Director of China’s National Development and Reform Commission, held a press conference in Beijing where he highlighted the impressive allocation of nearly 6 trillion yuan (around $850 billion) in government investment for this year. This initiative aims to accelerate the delivery of tangible results from these investments.

During the briefing organized by the State Council Information Office, Liu detailed the current status of government investments. He shared that the central budget’s allocation of 700 billion yuan is already in motion, boasting a project startup rate of 58%. Moreover, out of the 1 trillion yuan in long-term special government bonds earmarked for “dual heavy” construction—focused on key national strategies and enhancing safety in essential sectors—700 billion yuan has been fully allocated, achieving a startup rate of 50%. He also mentioned that for local government special bonds, totaling 3.12 trillion yuan aimed at project construction, 2.83 trillion yuan had been issued by the end of September, resulting in a remarkable issuance rate of 90% and a project startup rate of 85%. Additionally, Liu confirmed that all projects financed by last year’s 1 trillion yuan in government bonds designed for disaster recovery and preparedness have been initiated as of June 30, with 770 billion yuan in investments completed thus far.

When it comes to private investment, Liu pointed out that since the beginning of the year, the National Development and Reform Commission has introduced 1,635 key projects to private investors, successfully securing private capital involvement in 441 of these initiatives, amounting to a total investment of 344.8 billion yuan. He noted significant advancements in private investments, particularly in large-scale infrastructure projects like nuclear power and railways.

Discussing plans to enhance effective investment further, Liu mentioned that releasing project lists and investment plans sooner could expedite preliminary work and early project launches. The National Development and Reform Commission intends to announce a list of 1 trillion yuan in “dual heavy” construction projects along with a 1 trillion yuan central budget investment plan by the end of this month. These initiatives have been thoroughly vetted in collaboration with relevant departments to ensure they meet the criteria for swift deployment and deliver tangible outputs within the year.

Liu also underscored the importance of maximizing the utility of local government special bonds. He stated that efforts will be made to ensure local governments finalize the issuance of around 290 billion yuan in remaining special bond quotas by the end of October while hastening project execution and funding utilization for already issued bonds. Furthermore, the National Development and Reform Commission, along with the Ministry of Finance, is actively working to expand the scope of support for local government special bonds. This expansion includes increasing the areas, scale, and proportion that can be allocated for capital, piloting project review autonomy, and establishing a “green channel” for ongoing projects. Liu promised that new measures geared towards optimizing and enhancing the management of local government special bonds will be announced soon.