China encourages administrative bodies to tap idle state assets

BEIJING  – China’s finance ministry encourages administrative bodies to revitalize idle state-owned assets, including by market-based leasing or selling those assets as some were poorly managed, said a notice by the ministry on Tuesday.

The notice came as administrative bodies and local governments are suffering fiscal pain as COVID-19 curbs reduced tax income while protracted weakness in the property sector hit state land sales revenue.

Idle houses, land, cars, office furniture, large equipment and software with inefficient operation at administrative institutions can be revitalised, according to the notice.

China has asked local governments and government bodies to tighten their belts in a bid to free up funds to give priority to ensuring people’s livelihoods as the economy faltered sharply this year.

Helped by a raft of government measures, the economy rebounded at a faster-than-anticipated rate in the third quarter, but softening factory activity in October suggested weaker economic recovery in the fourth quarter as protracted COVID-19 restrictions disrupted production and subdued demand.