In a move to curb profit-driven and arbitrary cross-regional law enforcement actions - commonly referred to as "distant-water-fishing" - targeting businesses, China has launched a special campaign since March to regulate law enforcement involving enterprises. SMU Associate Professor of Finance Fu Fangjian said the campaign helps correct negative practices that affect the business environment. Compared to last year, private sector confidence has started to recover. He explained that in the past, due to financial pressure on local governments, some local enforcement agencies frequently imposed unjust penalties on private enterprises, skin to "distant-water-fishing." However, as the central government stepped in with the issuance of special-purpose bonds to ease local fiscal stress, such enforcement practices have noticeably declined in recent months.
