China has unveiled a plan to bolster funding for rural revitalization, aiming by 2030 to establish a more sustainable and efficient investment system that combines fiscal support, credit, insurance, bonds and private capital to strengthen food security and modernize rural areas, as reported by Reuters. The plan gives agriculture and rural areas priority in budget allocations, increases compensation for major grain-producing regions, and allows local governments to use proceeds from special and general bonds for rural infrastructure, industrial development and public-service projects.
Banks are encouraged to increase lending to major grain- and seed-producing counties, with financing directed toward grain production and supply security, rural industries, infrastructure and agricultural technology. The plan also promotes loans secured against livestock, farm machinery, agricultural facilities and warehouse receipts, while expanding agricultural insurance. It also calls for stronger loan guarantees and risk-sharing mechanisms to improve access to financing for agricultural borrowers.
The policy further encourages the participation of private capital through rural revitalization funds and other market-based channels, alongside stronger oversight of rural investment projects. More information