Regulation on Government Investment (State Council Decree No. 712).

This Regulation is developed to maximize the role of government investment, improve the efficiency of government investment, regulate government investment behavior, and stimulate the vitality of social investment.
For the purpose of this Regulation, “government investment” means the fixed asset investment and construction activities conducted with the funds from government budgets within China, including new construction, expansion, reconstruction and technical transformation.
Government investment funds shall be channeled to projects in public fields where resources cannot be effectively allocated by the market, such as social welfare services, public infrastructures, agriculture and rural affairs, ecological and environmental protection, significant scientific and technological progress, social management, and national security, and mainly target not-for-profit projects. The state shall improve relevant policies and measures, maximize the guiding and driving roles of government investment funds, and encourage the investment of social funds in the fields as prescribed above.