WSJ: “China has recently approved 25 subway projects by local governments, data from the country’s top economic planning agency show, as part of the central government’s efforts to boost sluggish growth in the world’s second-largest economy.
The National Development and Reform Commission has approved a total of 710.8 billion yuan ($112.1 billion) worth of investments by 18 local governments to build city subways, according to statements posted on its website Wednesday.
Most of the approvals came between June and August, according to the NDRC. The projects are expected to have an average construction time of 4.6 years, with local governments providing 40% of the funding.
Beijing has significantly accelerated approvals for new infrastructure projects by local governments as it seeks a range of avenues to jump-start growth, which slowed to a more-than-three-year-low of 7.6% in the second quarter. Recently-released key economic data from the manufacturing, trade and industrial sectors added to the gloom.
Nomura economist Zhang Zhiwei said the recent number of city subways approved was comparable with the 23 approved in early 2009, when the government unleashed a 4 trillion yuan stimulus package.
“This news suggests that the pace of fiscal policy easing has picked up,” Mr. Zhang said.”
via China Approves 25 Subway Projects – WSJ.com.
China is at it again, using infrastructure spend to boost the economy. At least this time its aimed a specific need, easing urban traffic and speeding urban travellers.
See also: https://chindia-alert.org/economic-factors/chinas-infrastructure/
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