China's Ministry of Finance and several ministries on June 4, jointly issued a notice ordering four kinds of non-tax revenues to be collected by central tax authorities. Seven regions, including Shanghai and Zhejiang, will pilot the measures starting July 1, with a nationwide rollout planned for January 1, 2022. The four nontax revenues are from: Land sales; Mining; Sea area utilization; and Uninhabited sea island utilization. While the notice said the central government will still transfer the entire sum back to local governments, but the new process adds a layer of oversight and reduces flexibility for local governments.

(Comment: Revenue from Land sales generated RMB 8.4 trillion for local governments in 2020.)