Caixin
ECONOMY

Planner Decries Poor Characteristics of ‘Characteristic Towns’

Characteristic towns, such as the one (pictured) in Jiangsu province that specializes in traditional Chinese medicine, were created to narrow the income gap between rural and urban areas and relieve overcrowding in larger cities. In many cases, however, they have become just another way for local governments to run up debt. Photo: Visual China
Characteristic towns, such as the one (pictured) in Jiangsu province that specializes in traditional Chinese medicine, were created to narrow the income gap between rural and urban areas and relieve overcrowding in larger cities. In many cases, however, they have become just another way for local governments to run up debt. Photo: Visual China

The so-called “characteristic towns” that were fostered to improve urbanization have worsened some local governments’ debt problems and suffer from a lack of market participation, according to an economic planning guideline that sets out measures to fight these problems.

China’s top economic planning body, the National Development and Reform Commission (NDRC), said in a 16-point guideline that the market should play a bigger role in characteristic towns so local governments will not have to engage in so much debt-fueled spending.

ladingImg
You've accessed an article available only to subscribers
Try 4 weeks for $0.99
SUBSCRIBE
Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.