Beijing has so far refrained from implementing a large-scale infrastructure construction programme, but did announce in March a 2 trillion yuan (US$291 billion) business tax cut to help stabilise the economy. Photo: Xinhua
Beijing has so far refrained from implementing a large-scale infrastructure construction programme, but did announce in March a 2 trillion yuan (US$291 billion) business tax cut to help stabilise the economy. Photo: Xinhua

China issues new rules on infrastructure financing due to implicit debt concerns

  • Restrictions on financing by public-private partnership comes after the government eased rules last month regarding the funding of local infrastructure projects
  • Beijing wants to boost local infrastructure projects while also avoiding the debt excesses of the past amid the trade war with the United States

Beijing has so far refrained from implementing a large-scale infrastructure construction programme, but did announce in March a 2 trillion yuan (US$291 billion) business tax cut to help stabilise the economy. Photo: Xinhua
Beijing has so far refrained from implementing a large-scale infrastructure construction programme, but did announce in March a 2 trillion yuan (US$291 billion) business tax cut to help stabilise the economy. Photo: Xinhua
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