China's Ministry of Finance and Ministry of Commerce have issued revised rules for the administration of the service industry development fund, the central government's special transfer payment for modern commercial circulation, modern services and consumption. The update keeps the programme in place through 2028 and resets the framework for eligible uses, allocation methods, fund management and performance oversight. Funding will support new consumption growth areas, including service consumption upgrades, lower-tier market demand and the use of emerging technologies such as artificial intelligence in consumption, as well as stronger trade and distribution infrastructure, supply security and modern supply chains. Allocations may use a project method, a formula method or both. For formula allocations, around 60 percent of the weighting will reflect service industry development and related work, about 30 percent budget execution and fund management, and 10 percent regional adjustments. Support may take the form of grants, interest subsidies, award-based subsidies or government procurement, and may be directed to eligible projects or enterprises and to pilot or demonstration provinces, cities, parks and other areas. The measures also tighten controls on misuse, duplicate central funding and prohibited spending such as debt repayment, personnel and operating costs of subsidized units, and new or expanded government office buildings. Performance evaluation will be an important basis for future allocations. Annual transfers from the Ministry of Finance must be sent to provincial finance departments within 90 days of National People's Congress budget approval, provinces must disburse them within 30 days, and the revised rules take effect on issuance, replacing the 2023 measures. Before the programme expires, the two ministries will assess whether to continue it and extend its term.

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