Beijing has taken a landmark step in streamlining its economic machinery. On December 12, China’s National Development and Reform Commission (NDRC), alongside the Ministry of Finance, Ministry of Science and Technology, and Ministry of Industry and Information Technology, jointly released the ‘Working Measures to Strengthen Planning and Guidance on Layout and Investment Direction of Government Investment Funds.’
This move marks the first time Beijing has systematically regulated the configuration and investment directions of government investment funds. A senior NDRC official highlighted that these measures address core questions: where to invest, how to invest, and who manages the funds.
The 14 policy provisions zero in on optimizing fund layouts. Investments must align with major national strategies, key industrial sectors, and market failures where private resources fall short. The goal? To drive deep integration of technological and industrial innovation, nurture emerging industries, and adhere to principles of early-stage, small-scale, long-term, and tech-focused investments.
For investment guidance, the measures mandate that funds support national plans and encouraged industries listed in official catalogs. Strict prohibitions bar investments in restricted or banned sectors, ensuring fiscal discipline.
National-level funds are tasked with a broad mandate: building modern industrial systems, accelerating breakthroughs in core technologies, and addressing industrial weaknesses. They will also clear development bottlenecks and foster sustained innovation capacity.
At the local level, investments must match regional industrial bases and realities. Local funds are urged to prioritize national market integration, industrial upgrades, innovation boosts, and support for SMEs, tech startups, and private enterprises. Encouraging social capital participation and strengthening public-private partnerships rounds out the strategy.
This comprehensive framework signals China’s commitment to efficient, innovation-led growth, positioning the economy for high-quality development amid global challenges.
