MNI China Press Digest Feb 26: Tax Cut, PPP, Climate

The following lists highlights from Chinese press reports on Friday:

• China may not be prepared to implement major tax and fee cuts in 2021 given its need to remain fiscal balance, wrote Han Yongwen, a former official with the National Development and Reform Committee, in a blog post for China Bond. About 60% of cities and 75% of counties across the country posted negative revenue growth in H1 2020 while spending is expected to rise, Han wrote. China will have CNY2.7 trillion in debt maturing this year, up CNY600 million from 2020, Han noted. The rate of increase in the money supply has surpassed economic growth, though liquidity hasn't been efficiently used, he said.
• Investments in public-private partnership projects may exceed CNY4.5 trillion this year, the Securities Times reported citing statistics from Ministry of Finance. As of Feb. 24th, 9,965 PPP projects have been registered totaling CNY15.4 trillion, comprising municipal engineering, transportation, environmental protection, and urban development, according to Ministry data. PPPs reduce local government debts and help private enterprises obtain financing, the report said.
• China's Newly appointed special envoy for climate change Xie Zhenhua Xie is expected to work closely with U.S. climate envoy John Kerry, the China Daily reported. Xie is expected to spearhead efforts for more meaningful co-operation on climate change amid a rift between the two countries, the Daily said. Xie, officially appointed by the Ministry of Ecology and Environment on Thursday, led the Chinese delegation in global climate negotiations from 2007 to 2018, which resulted in China joining the Paris Agreement on climate change.