The Ministry of Finance ("MOF") and the Ministry of Industry and Information Technology ("MIIT") have recently issued the Measures for the Management of Subsidies for Pilot Telecommunications Universal Services (the "Measures"), immediately effective from the date of issuance.
The Measures provide that, with a view to improving the availability of broadband networks in rural and remote areas as soon as possible, contributing to the "Broadband China" strategy, and making progress in implementing strategic plans for building China into a network power, the special funds will be allocated to mainly support three matters, including "building fiber or 4-Generation broadband networks in administrative villages and border areas and on islands (reefs)". Further, the Measures explicitly state that, the MIIT will organize expert reviews to cherry-pick regions, which will be granted annual subsidies for local pilot projects, and to assess overall costs of pilot projects. The MOF will decide on the amount of annual special subsidies, according to the overall costs determined by the MIIT, offer subsidies at progressive rates of overall costs of pilot projects operated in eastern, middle and western areas and in all autonomous regions, and give a stronger support to a proper extent to key areas like border areas and islands (reefs). Moreover, the Measures emphasize that, in case of any misconduct, such as the mismanagement that results in losses or waste of the country's assets, the MOF may take such measures as the withdrawal of the allocated subsidies.