China is stepping up efforts to breathe new life into its rural areas. The People’s Bank of China (PBOC), together with the Ministry of Agriculture and Rural Affairs, has issued new guidelines aimed at boosting financial support for rural revitalization.
The guidelines focus on improving financial services in rural regions, ensuring that funds are used efficiently to bring about positive changes. One key area is food security. The plan includes increasing credit support to major grain-producing regions and enhancing financial services for high-standard farmland and water conservancy projects.
To build on the success of poverty alleviation efforts, China will maintain credit support for areas that were previously impoverished. The goal is to develop new financial support mechanisms for these regions after the transitional period following their success in reducing poverty.
Financial services will also be strengthened to promote industries that can create wealth in rural areas. This includes offering innovative financing models and products, and broadening the options for collateral to make it easier for rural businesses to obtain loans.
Moreover, through financing methods like loan-equity combinations and syndicated loans, diverse financing solutions will support the expansion of infrastructure and public services into rural areas. This aims to bridge the gap between urban and rural regions and support new forms of urbanization in counties.
The guidelines also highlight the importance of integrating agriculture with culture and tourism, as well as promoting the development of digital villages. Enhanced financial services will support these initiatives, empowering rural communities and boosting the rural economy.
