State Council: Government Investment

state council: Analysts familiar with how the government works said the document will help regulate, clarify and provide a legal basis for government investment, according to Global Times China. The government should focus on investment in areas such as public welfare, infrastructure, agriculture and rural areas, as well as environmental protection, major scientific and technological advances, social management, national security and other public projects, according to the 4,000-character regulation. The State Council, China's cabinet, on Sunday released new regulations for the government's investing activities, addressing a wide range of issues from restrictions on government investment to guiding principles to specific procedures, to provide a better positioning of the role of government-led spending and improve social efficiency. Other sectors are supposed to be invested in by the private sector. According to domestic financial news site yicai, government investment amounts to 3 trillion yuan 443.37 billion . Feng Liguo, a research fellow with the research center at China Minsheng Bank, said the regulation will restrict local governments, which have huge say in how to invest fiscal budgets. For government officials, the regulation will be a basic safeguard as they will henceforth have a concrete idea of the boundaries of their responsibility instead of relying on think tanks' advice or following their gut feelings, Ye Qing, a professor with Wuhan-based Zhongnan University of Economics and Law, told the Global Times. (news.financializer.com). As reported in the news.