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Tax reforms included in China's new five-year plan are expected to significantly ease the fiscal burden on local governments, an expert stated. However, the central government's dominant fiscal role is projected to remain.

China's Tax Reform Expected to Ease Local Fiscal Burden

A tax policy expert stated that if tax reforms included in China's new five-year plan are fully implemented, the fiscal burden on local governments would be significantly eased. The expert added that these reforms would not alter the central government's dominant role in China's fiscal landscape.

Central Government's Unified Fiscal Management to Continue

The expert explained that as a unified nation, China possesses a systemic strength in using the robust finances of the central government to coordinate fiscal resources in a unified manner and redistribute them through transfer payments. This is a key factor enabling the central government to maintain strong control over the nation's overall finances.

*Source: SCMP (2026-03-13)*

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