The State Council's latest decision! In-depth planning to promote a batch of major projects and significant engineering initiatives

February 6th, the State Council Premier Li Qiang presided over an executive meeting of the State Council to hear reports on the work of handling suggestions from National People’s Congress deputies and proposals from the Chinese People’s Political Consultative Conference in 2025, study policies and measures to promote effective investment, deploy revisions to the “Environmental Air Quality Standards,” and discuss the “Revised Draft of the People’s Republic of China Tendering and Bidding Law.”

The meeting pointed out that it is necessary to plan and implement a series of major initiatives and projects, especially to achieve greater breakthroughs in developing new quality productivity, strengthening the domestic big cycle, and increasing residents’ income. Emphasis should be placed on forward-looking planning, staying grounded, and continuously shaping new development advantages that lead the future through practice.

The meeting mentioned the need to innovate and improve policy measures, enhance efficiency, and make good use of funds such as central budgetary investments, ultra-long-term special national bonds, local government special bonds, and new types of policy financial instruments.

In addition, with the upcoming National Two Sessions, the meeting emphasized the importance of earnestly implementing the newly amended Deputies Law and the revised Regulations on the Work of Proposals from the Chinese People’s Political Consultative Conference, actively listening to and adopting opinions and suggestions from deputies and members, focusing on implementation and transformation, and ensuring high-quality handling of suggestions and proposals this year.

Research on Policies and Measures to Promote Effective Investment

This meeting focused on researching policies and measures to promote effective investment. It pointed out that it is necessary to innovate and improve policy measures, make good use of funds such as central budgetary investments, ultra-long-term special national bonds, local government special bonds, and new policy financial tools.

The meeting also highlighted the need to align with the formulation and implementation of the “14th Five-Year Plan,” focusing on long-term development needs and building future competitive advantages. In key areas such as infrastructure, urban renewal, public services, emerging industries, and future industries, in-depth planning should be carried out to promote a batch of major projects and engineering initiatives. The role of central state-owned enterprises in expanding investment should be better leveraged, and efforts should be increased to support private investment development, forming a joint force to promote effective investment.

Central budgetary investment refers to projects included in the annual budget arrangements of the central government and supported by central fiscal funds. Yang Chang, Chief Policy Analyst at Zhongtai Securities, stated that at present, local debt burdens remain relatively heavy. Increasing efforts to secure central budgetary investment is of great significance for alleviating local fiscal pressure and optimizing infrastructure, public services, and livelihood projects.

Considering that budgetary investment has characteristics of public welfare, foundational, and strategic importance, Yang Chang believes there is room for increased efficiency in the fields of “modern infrastructure systems” and “people’s well-being.” In the field of “modern infrastructure systems,” emerging directions such as transportation infrastructure, energy infrastructure, and water conservancy infrastructure are worth attention; in the “people’s well-being” sector, directions such as infrastructure matching population needs and urban-rural integrated development are worth focus.

Reform and Improve the Tendering and Bidding System and Mechanism

The meeting discussed and approved in principle the “Revised Draft of the People’s Republic of China Tendering and Bidding Law,” and decided to submit the draft to the Standing Committee of the National People’s Congress for review. The meeting pointed out that this legislative revision should be taken as an opportunity to reform and improve the tendering and bidding system and mechanism, eliminate hidden barriers, improve evaluation methods, increase transparency, severely crack down on illegal activities, and promote the healthy and regulated development of the tendering and bidding market through both root and branch efforts.

With the rapid development of the economy and society and ongoing reforms in the construction industry, the current Tendering and Bidding Law cannot fully meet market demands and new industry development trends. In 2025, revising the Tendering and Bidding Law was included in the initial review of laws in the “Legislative Work Plan for 2025” of the Standing Committee of the National People’s Congress.

Industry experts believe that the revision of the Tendering and Bidding Law should be aligned with relevant laws, regulations, and market operation mechanisms to form a coordinated and unified legal system. Efforts should be strengthened to combat industry chaos during tendering and bidding processes, and to effectively safeguard fairness and transparency in tendering activities.

Deputy Minister of Finance Liao Min recently stated at a State Council Information Office press conference that, in supporting the construction of a unified national market, the Ministry of Finance will continue to optimize government procurement order. The Ministry will actively cooperate with the Financial and Economic Affairs Committee of the National People’s Congress to promote the revision of the Government Procurement Law and coordinate the laws on government procurement and tendering and bidding, aiming to align with international high-standard trade rules, strengthen the policy functions of government procurement, optimize transaction rules, reduce institutional transaction costs, and strive to build a complete, unified, and standardized legal system for government procurement.

(Source: Securities Times)