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BEIJING, May 5--China's State Council released on Sunday a regulation on government investment to deepen the reform on the country's investment and financing mechanism and enhance law-based administration. The regulation, made public through a State Council decree signed by Premier Li Keqiang, will go into effect on July 1. It clearly defines the scope of government investment to ensure the investment focuses on key areas and goes where it is targeted. Government investment or fixed-assets investment using budgeted funds is a significant function of the government, which bears on overall economic development and plays an important role in implementing national development strategies and driving up social capital investment, according to a joint statement by the Ministry of Justice and the National Development and Reform Commission. It is also essential in preventing risks, improving the weak links in national development, optimizing supply structure and increasing the country's development potential, the statement noted. CLEAR-CUT INVESTMENT SCOPE According to the regulation, government investment should be channeled to the public sectors where resources cannot be effectively allocated by the market, and mainly target non-operational projects. As government investment concerns the relations between government and market, the government must "know what to do and what not to do with its investment" and "eliminate inefficiency, waste while avoiding scrambling for profit with the people," the statement explained. | 
