Page 32 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

and adjust the economic structure. It will go toward supporting faster
implementation of major projects outlined in the 14th Five-Year Plan and
strengthening transport, energy, water conservancy, agriculture, and information

infrastructure. We will make thorough preparations for projects funded by local
government special-purpose bonds, expand the reserve of high-quality projects,

and use the funds in an appropriately concentrated manner, tilting them toward
projects already under construction and new projects that are ready to get under
way. We will lay emphasis on the performance of government investment, prevent

the blind expansion of investment, and encourage more private investment in this
regard. A total of 680 billion yuan will be earmarked for investment in the central

government budget, an increase of 40 billion yuan over last year, in order to shore
up weak spots in key areas. This allocation has been made in light of several

factors, including the need to make up for shortfalls in central government funding
for waterway development following the cancellation of port development fees.

We will back a new group of demonstration cities in making systematic efforts to
develop their respective jurisdictions into “sponge cities,” and we will work to
accelerate urban renewal projects.

We will support intensified efforts to stabilize foreign trade. We will implement the
Regional Comprehensive Economic Partnership and other free trade agreements,

and step up efforts to publicize free trade agreements and guide local governments
and enterprises in making full use of them. We will improve policies on tariffs,

import taxation, and export tax rebates, optimize the use of special funds for
supporting foreign trade, encourage cross-border e-commerce, overseas

warehouses, and other new foreign trade models, and expand imports of advanced
technologies, major equipment, and energy and resource products. We will carry
out demonstrations for improving quality and performance in the area of foreign

trade to promote stability and industrial upgrading in related sectors, and leverage
the role of export in supporting the economy. To promote alignment with

high-standard international economic and trade rules, we will support pilot free
trade zones in carrying out reform and innovation. We will bolster financial

support, gradually increase the scope of products subject to tariff exemptions, and
step up stress tests, in an accelerated effort to develop the Hainan Free Trade Port.

31