The system of awarding athletes for their outstanding performance in competitive sports should be regulated by government, according to a ranking official of the Ministry of Human Resources and Social Security.

MOHRSS Vice Minister He Xian told members of the 12th Chinese People's Political Consultative Conference during a deliberation on team sports that any amount of money awarded to athletes belongs to the people and must be used for the right purposes.

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"The awarded money is common people's money. From now on, government shall regulate this kind of award better. No matter if the money is taken from the central government or local government, the award should play a positive role and obtain a positive social response," He said.

The issue had stemmed from the fact that top seed Li Na was awarded CNY 800,000 (US$ 132,000) by her home province of Hubei after winning her second Grand Slam title in this year's Australian Open.

The award drew a lot of negative response from Chinese netizens who claimed that Li's prize was taxpayers' money.  They argued that the money should instead go to the poor children of Hubei, even just for clothes to help them through the winter.

A lawyer had questioned the amount and asked the Hubei Provincial Government to disclose the legal basis, capital source and approval process of Li's CNY 800,000 award, but the Hubei Provincial Sport Bureau only said Li's award is in accordance with current policies and award standards.

In 2012, Hubei Province formulated an incentive system for its "competitive sports talents", defined as those who bring home gold medals from their participation in the Olympics, World Cup, and the National Games. Other exceptional sports talents may also qualify upon confirmation and approval by the Hubei Provincial Sport Bureau and Provincial Human Resources and Social Security office.

He said his ministry is working on the performance wage system with State General Administration of Sports to see if the system works and how best to carry it out.