The intervention of local governments in the economy is not only reflected in stimulating economic growth directly through financial investment, but also in guiding the investment decision-making of enterprises through financial subsidies, tax preferences, credit preferences and reducing the cost of land and other factors
There are both state-owned enterprises and private enterprises in industries with overcapacity such as steel, cement and electrolytic aluminum.
 As a result, state-owned enterprises often become a means of government intervention and economic regulation