Chinese premier stresses new funds should directly benefit businesses, people

QINGDAO -- Chinese Premier Li Keqiang on Monday urged efforts to establish strict regulatory mechanism to ensure new fiscal funds go straight to city and county governments and directly benefit businesses and people.

China will increase its deficit by 1 trillion yuan this year and issue 1 trillion yuan of government bonds for COVID-19 control, as part of efforts to provide relief to businesses and unleash market vitality, Li said in a video conference in the northern port city of Qingdao.

Noting that the funds should be primarily used to ensure employment, meet basic living needs, and protect market entities, Li stressed that a special transfer payment mechanism should be set up to ensure that funds go straight to primary-level governments and directly benefit businesses and people and that no such funds are allowed to be withheld by provincial governments.