On 25 February, Xinhua News Agency reported that the General Office of the Central Committee of the Communist Party of China had issued a notice launching a party-wide campaign to promote a “correct view of political achievements”. Approved by the Central Committee, the initiative calls on officials across the country to reassess how political performance is measured and evaluated.
This directive was issued at the beginning of China’s 15th Five-Year Plan period. In a recent address, General Secretary Xi urged party members and officials to adopt a more pragmatic approach to governance. He said that officials should proceed from practical realities, respect objective economic laws, and pursue policy outcomes that can stand up to scrutiny from both practice and history. He argued that achievements should be measured by whether they genuinely benefit the public and earn social recognition. He warned, however, that distorted performance incentives driven by personal interests or political image-building can encourage short-termism, superficial ‘showcase projects’, and policy decisions that leave behind financial burdens and long-term risks.
During a recent trip home for the Lunar New Year holiday to visit relatives and friends, I encountered the widespread view that the central government’s call for a more responsible approach to evaluating officials is both timely and necessary. However, the challenge lies in translating such directives into practice across China’s complex administrative hierarchy — from Beijing down through provincial, municipal, county, township and village governments. A recent case in one of China’s major economic provinces illustrates how flawed local governance can undermine broader national economic objectives, particularly at a time when policymakers are grappling with weak domestic demand.
During the tenure of a former provincial party secretary who has since fallen from power, a municipal official in that province altered the planning designation of a private investment project without informing the company involved. The land title and business licence clearly specified that the project was to be a golf course with supporting villas, and the development had previously passed multiple inspections by the National Development and Reform Commission as a compliant private investment project. However, the provincial official unilaterally changed the planning designation, placing the site within a national ecological conservation pilot zone.
This ultimately triggered a chain of events that turned the project into what investors now describe as a cautionary tale. In 2023, a national environmental inspection led by the Ministry of Ecology and Environment ruled that golf courses were prohibited within ecological conservation zones. The following year, local authorities acknowledged that the earlier planning adjustment had been an administrative error, yet still ordered the golf course to suspend operations and close.
Government enforcement agencies subsequently demolished the fairways and other facilities. Although officials promised full compensation, the private enterprise — which had invested over 400 million yuan to build a business valued at close to 1 billion yuan — effectively lost its entire investment, along with years of operating income. More than two decades of development were erased. However, the local government, under mounting financial pressure, has so far failed to provide compensation. Instead, in 2024, it financed severance payments for almost 300 employees to prevent potential labour unrest. A legally established enterprise that had generated significant local economic value and employment was effectively eliminated.
Despite the setback, the site’s location, prized for its natural surroundings, recently attracted the interest of a multinational client of mine, after the local authorities renewed their efforts to promote investment. Under the leadership of the new municipal administration, officials have proposed transforming the area into a world-class cultural tourism project, with the aim of revitalising employment and stimulating domestic consumption. However, the earlier dispute remains unresolved. The original private enterprise obtained the land through an open and legitimate bidding procedure and still holds a 50-year land-use right, which creates a major legal obstacle for the incoming international investor.
In an attempt to clear the way for the new project, the municipal government has made resolving the legacy dispute a priority. Officials initially pledged to finalise a compensation agreement by the end of 2025. However, due to limited fiscal resources, the local government has yet to make meaningful progress.
Following the recent conclusion of the fourth session of the 14th National Committee of the Chinese People’s Political Consultative Conference, some analysts believe that Beijing may consider allocating central funds to help local governments resolve such historical liabilities. Policymakers warn that, without a mechanism to address these cases and restore investor confidence, China will continue to face challenges in boosting domestic demand and creating sustainable, high-value-added employment.