The fiscal family: adviser says China’s tax flows should resemble parental ties

South China Morning Post Economic ImpactNews ReportEN 1 min read 100% complete by Ji SiqiMarch 13, 2026 at 04:00 AM

AI Summary

short article 1 min

A Chinese tax policy expert, Zhang Lianqi, suggests that upcoming tax reforms will alleviate financial pressures on local governments in China, but will not challenge the central government's primary fiscal role. Zhang, president of the Enterprise Financial Management Association of China, emphasizes the importance of a strong central finance system for resource coordination and redistribution, contrasting it with federalist systems. He likens the central government to a "father" who should hold the majority of funds and transfer payments to local governments, the "children." Zhang warns against a scenario where the central government relies on local governments for financial support, deeming it problematic. The reforms are part of China's new five-year plan.

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Key Claims (5)

AI-Extracted

If the father constantly has to borrow from the children to balance public finances, then that becomes a big problem.

quote — Zhang Lianqi100% confidence

Central finance is like a father, local governments are like children.

quote — Zhang Lianqi100% confidence

Reforms would not alter the central government’s dominant role in China’s fiscal landscape.

prediction — Zhang Lianqi90% confidence

Taxation reforms pledged in China’s new five-year plan would ease fiscal strains on local governments.

prediction — Zhang Lianqi80% confidence

China's systematic advantage lies in strong central government finance.

quote — Zhang Lianqi70% confidence

Claims are automatically extracted and should be independently verified. Attribution indicates the stated source of the claim.

Key Entities & Roles

Key Player Opposition Context

United States 50% Enterprise Financial Management Association of China 60% Chinese Tax Institute 60% Local Governments ×270% National Committee of the Chinese People’s Political Consultative Conference (CPPCC) 70% Central Government ×280% Zhang Lianqi ×290% China ×3100%

Keywords

china 90% fiscal policy 90% central government 80% tax reforms 70% local governments 70% transfer payments 60% unitary state 50% fiscal strains 50% fiscal federalism 40%