China to curb local subsidies with national negative list
China will launch a negative-list system to ban specific local subsidies. The policy aims to curb industrial overcapacity and ensure fair market competition.
Xurve View
Xurve View
China is set to implement stricter controls on local government subsidies as part of a broader strategy to address industrial overcapacity and foster a more unified domestic market. During a meeting chaired by Premier Li Qiang, the State Council announced the creation of a national negative-list system. This framework will explicitly define the specific sectors and scenarios where local authorities are prohibited from providing financial incentives to manufacturers.
