To entice enterprises to set up shop within their jurisdictions, provincial governments frequently dangle attractive tax subsidies or concessions on land leases. Unfortunately, such inducements often exceed what is sanctioned by law.

Official data shows that 53 out of the 54 counties investigated by auditing authorities between 2008 and 2011 waived over 7 billion yuan ($1.14 billion) in taxes to businesses.

All public financing operations - including tax collections and refunds performed by local governments - need to be made according to relevant regulations. Yet administrators have been known to step outside the boundaries of the law when it comes to cash handouts and tax breaks.

I understand that officials need to bring private investment into their own backyards, but administrators can't bend or break tax laws whenever it serves their purposes. This will only encourage more malfeasance.

The author is Feng Jianghuai, a commentator.