China Plans Extensive Infrastructure Investment
Monday, China’s top economic planner laid out new plans and measures aimed to increase investment.
Xu Shaoshi, head of the National Development and Reform Commission (NDRC) told a press conference that funding for targeted projects would be increased and the commission would encourage more cooperation between government and private capital. More powers will be delegated to lower levels and the funding mechanism will be improved to push more capital into the real economy.
Xu stressed that considerable uncertainty still surrounds the economy. China is battling a property downturn, industrial overcapacity, sluggish demand and weak exports, which dragged growth down to 7% for 1-H of this year.
The government is pinning hopes on infrastructure investment to bolster and boost growth.
In the 1st 8 months, investment in infrastructure rose 18.4% Y-Y, contributing to 27.7% of the overall investment.
By Hou Qiong
Paul Ebeling, Editor
HeffX-LTN
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