CHINADAILY March 2829, 2015
BOAO FORUM FOR ASIA 5
FINANCE TRAVEL Debtswap plan of local governments set to be expanded
Central authorities won’t bail out troubled had put the number at only about 10 percent of that. borrowers, according to finance minister Explaining the discrepan cy, he said: “Not all of those By ZHENG YANGPENG entities are local govern in Boao, Hainan ment financing vehicles. zhengyangpeng@ They could also be govern chinadaily.com.cn ment departments, such as a transportation department China is likely to expand its under a municipal govern bondfordebt swap pro ment, or public institutions.” gram to address the problem Numerous local govern of legacy local government mentrelated entities, debt, Finance Minister Lou including LGFVs, were set Jiwei said on Friday, adding up in the past few years to that the central government Lou Jiwei, finance minister borrow through bank loans, does not intend to bail out trusts or the bond market. local governments that can Whatever the type of entity not repay their debt. 1.858 or its form of borrowing, the His remarks reflected the common aim was to bypass trillion yuan Mao Chaofeng, vicegovernor of Hainan province, said that the tourism island will continue to ease its dutyfree policy and bring in central government’s two the 1994 Budget Law that tourism professionals to develop the area into an international destination. HUANG YIMING / CHINA DAILY pronged strategy to address banned direct local govern the amount of local debt falling the thorny local government ment borrowings. due this year debt issue. As to how the future On the one hand, the cen municipal bond quota will tral government wants to 2013 (1.858 trillion yuan was be distributed among more Hainan to ease its dutyfree policy give local governments nec the amount recorded by than 30 provinciallevel gov essary leeway to cope with State auditors as of that ernments, Lou said the size any liquidity problems. On point), more than half of the of each jurisdiction’s debt By LIU XIAOLI talent, customers and entre island, including those the other, it is warning those legacy debt is not covered by hangover will be an impor in Boao, Hainan preneurs.” involving lotteries and open same governments that if the swap. How those high tant factor. Those with more [email protected] According to the province, ing up, have stimulated tour they get into trouble, they cost borrowings are going to debt will effectively be the variety of imported items ist spending. will have to “clean up their be repaid has become a penalized by getting lower Hainan International available at its two dutyfree We hope that more As of Dec 31, sales of own mess”, so to speak, and widespread concern. quotas. Tourism Island in South Chi shops has been increased to instant lottery tickets in the should not expect the cen Lou sought to reassure the Huang Qifan, mayor of the na will continue to ease its 38 now from 18 previously. travel options ... province reached 1 billion tral authorities to solve any market by saying that southwest municipality of dutyfree policy and bring in The range includes baby for yuan, which raised nearly crisis. beyond the 1 trillion yuan Chongqing, revealed that as tourism professionals to mula, nutritional supple can be developed 200 million yuan for chari On March 9, the Ministry swap, there is more to come. of Dec 31, the city’s total out develop the area into an ments and electric ties. And a new kind of online of Finance said that it had “We are ready to further standing liabilities exceeded international tourist destina appliances. to attract more lottery has been approved by ordered the issue of 1 trillion replace the debt,” Lou said, 590 billion yuan. Of that, tion, according to top offi Exemptions on certain the General Administration yuan ($160 billion) of low adding that the risks arising about 230 billion yuan was cials from the province. imported goods worth up to tourists.” of Sport. yield municipal notes to from the local government direct debt. Huang said that ViceGovernor Mao Chao 8,000 yuan ($1,290) in total Preferential policies have Mao Chaofeng, vicegovernor of replace legacy liabilities, in a debt are still “controllable”. 77 percent of the debt was feng said at a news confer are available for tourists, also been given to the prov Hainan bid to ease local govern But he said: “We won’t considered to be “generally ence on Friday in Boao that who can receive the exemp ince to develop an interna ments’ mounting interest mount any rescue. Previous controllable”. domestic and foreign tour tions twice each year. tional medical tourism pilot repayment pressure. That documents have made it The city got a 33 billion ism professionals are wel According to the provin shop in the Haikou Meilan zone, which was approved by issue represents 53.8 per clear.” yuan quota in the latest come to develop more cial government, as of Dec International Airport. the State Council, China’s cent of the 1.858 trillion Lou also revealed for the bond swap. itineraries and promote 31 a total of 4.09 million There are visa exemptions cabinet, in February 2013. yuan debt falling due in first time that the number of Chongqing is believed to local tourism. people had spent 11 billion for tourists from 26 coun The policies have allowed 2015. local governmentrelated have a higher debttofiscal “We hope that more travel yuan on the island since the tries. The provincial govern lower tariffs on certain medi However, considering borrowers had reached revenue ratio than many options, such as ecotourism, two taxfree shops started ment said on Friday that cal devices and medicines, as debts incurred after June 100,000. Previous estimates other regions. rural tourism and medical operation. people from those countries well as stateoftheart medi tourism, can be developed to The offshore dutyfree had accounted for almost 90 cal technologies and the attract more tourists,” said program, which was percent of all foreign tourists operation of foreigninvested Mao. “The province will also launched in April 2011, now who visited the island since medical organizations. ENVIRONMENT revise its policies in the cul applies to the Haitang Bay August 2010. tural, sports and medical Dutyfree Shopping Center According to Mao, the spe Cang Wei contributed to this industries to attract more in Sanya and the dutyfree cial policies given to the story.
What they say
“The increas “The ‘One “Although ingly sophis Belt, One growth in ticated Road’ strate Asia has global sup gy needs slowed, due ply chain has support to change in made food from Hong global econo safety Kong, a glob my, the inspection a challenging job. al center of trade. We hope region remains the growth A discussion on smog and health was held in Boao on Friday. HUANG YIMING / CHINA DAILY The economic slowdown has the new national strategy engine of the global economy, also led some bigname cor can take advantage of Hong which contributed 50 percent Steps needed to eliminate smog porations to cut back invest Kong’s geographic advantage of global growth. The largest ment in food security to boost trade with related potential threat for Asia is the By GAO YUAN more than other leading 2030 and then will decline as inspections.” regions.” gradual decline in productivi in Boao, Hainan economies such as the Unit more clean energies such as Zhi Shuping, minister of the General Leung Chunying, chief executive of [email protected] ed States. The extremely solar, wind and nuclear pow ty. How to lift the productivi Administration of Quality Supervision, Hong Kong SAR large amount of chemicals er will replace coal and oil. ty is the major challenge.” China’s efforts to combat emitted from coal burning The government is also Inspection and Quarantine Zhu Min, deputy managing director of the pollution and smog will last and other meteorological trying to increase electric car “The golden International Monetary Fund. for more than a decade as factors have triggered the sales in a bid to cut vehicle “I don’t think coal and other fossil energy haze,” Qin said. emissions. age for Chi sources will continue to “Improving air quality is Wan Bentai, chief engineer that Chinese na’s property “The strong power the world’s second not only the responsibility of at the Ministry of Environ Internet largest economy, experts the government. All the mental Protection, said fight market has est impulse said on Friday. stakeholders must work ing air pollution is a “long companies Adopting more clean ener together to curb excess emis term struggle” for China gone. China for innova entering the gy sources to at least partially sions and stop the smog,”Qin because the immense also faced tion comes replace the fossildominated said, calling for closer coop amount of energy consump electric vehi energy structure of the coun eration among the govern tion makes it difficult for severe over when a com try over the next decades will ment, enterprises and the the country to adopt new cle sector capacity issue in many indus pany faces a be the key to eliminate the public. energy sources. will hurt the existing manu smog choking large parts of China stepped up its Direct emissions, as well as tries…but these questions lifeand the country, said Qin Dahe, efforts to bring down carbon physical and chemical reac facturers. On the contrary, also create a ‘time window’ death situation. The mobile an academic with the Chi emissions four years ago aft tions of the emissions in the the move will promote inno nese Academy of Sciences er haze enveloped many cit air together, have triggered for China to restructure the Internet era offers plenty of and former director of the ies such as Beijing, Tianjin the smog. Emissions from vation and boost demand. It economy for the better.” opportunities for startup Chinese National Meteoro and Shanghai. Last year, the the manufacturing sector will be good for everyone.” logical Administration. government said the coun and coalburning processes Zeng Peiyan, former vicepremier and companies.” “China burned 4.1 billion try’s carbon dioxide emis contributed half of the direct Daniel Kirchert, president of Dongfeng vicechairman of the board of directors of metric tons of coal last year, sions will reach its peak by emissions, Wan said. Infiniti Motor Co Ltd Boao Forum for Asia Zhang Yaqin, president of Baidu Inc