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4,000 Illegal Investment Projects Investigated In China
Central News Agency
The Chinese State Development and Reform Committee has indicated that China has begun to straighten out some of its illegal, fixed-assets investment projects. They have done this by ordering constructions to cease, or by suspending the constructions for a limited time in order for them to be rectified. China has also cancelled those illegal projects already established. The total number of projects is 4,150 and the total investment involved is about 844 billion yuan (US$102 billion). The program began in April.
According to a report from the Chinese News Agency, the officer in charge of the Development and Reform Committee expressed that the foci of this revision were the steel, iron, electrolyzed aluminum and cement industries. Additionally targeted were party and government office buildings and training centers; city high-speed transportation, golf courses, expo centers, large shopping centers and some new projects established this year. The total number of fixed assets investment projects under investigation is 70,600 and the total investment scale exceeds 17,270 billion yuan (US$2,086 billion).
While the Development and Reform Committee concedes that the overhaul of these fixed assets investments has achieved some initial result, it is spasmodic and its foundation is not yet stable. There are still more than 20,000 projects in many regions that are planning to implement construction, and with the pressure behind the expansion of investment still very high, some industries are investing blindly. The phenomenon of sub-standard overlapping construction projects has yet to change.
Some places do not have a strategy for dealing with the issues arising after the revisions. The committee officer stated in the report that at present they should pay more attention to solidifying the groundwork from the previous period of activity and so prevent the rebound effect of investment reappearing. In the meantime, they should also deal with those problems arising from all manner of projects.
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