The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China clearly put forward the important proposition of regulating the economic promotion behavior of local governments. Previously, it was emphasized at the relevant meeting to deepen the construction of a unified national market, which specifically aimed at regulating investment promotion behavior, with the requirements of five unifications and one opening-up. This article conducts an in-depth examination of the current situation and root cause analysis, and proposes a path outlook.
In the face of the transitional reality of the fund investment model, it is necessary to regulate, control, and guide it to curb its negative impact on the unified national market, as well as create conditions to promote its evolution towards a more advanced form. Fund investment is a complex and phased phenomenon in the process of building a unified national market. The current focus of work is to control and optimize this model through the combination strategy of standardizing behavior, controlling risks, and guiding transformation, so as to minimize its negative effects, and gradually lay the foundation for new development paradigm that relies more on market mechanism and service innovation in the future. This requires in-depth research in the theoretical field, as well as continuous exploration and innovation by practitioners under the unified deployment of the central government.
