China to invest $1000 bn in infrastructure in next 5 years
China has decided to pump in $1,000 billion to speed up infrastructure growth and boost industrial expansion in the next few years.world Updated: May 12, 2016 19:23 IST
Its economy might be slowing but China has decided to pump in $1,000 billion to speed up infrastructure growth and boost industrial expansion in the next few years, the government has announced.
A three-year action plan focussed on improving infrastructure has been launched, state media reported, adding that more than $720 billion will invested in projects across China.
The plan is to rapidly expand infrastructure where it is needed in the next three years, officials said.
“The plan, jointly issued by the National Development and Reform Commission (NDRC) and the ministry of transport, aims to improve the rapid transit net, basic traffic net and urban transit net, establish an integrated transportation network and better leverage the fundamental role of combination advantage and network efficiency,” state-run China Daily newspaper said in a report on Thursday.
The NDRC is China’s top planning body and frames the country’s future economic plans.
The ambitious plan, according to the newspaper, is pretty specific: It includes 303 projects covering railways, highways, waterways, airports and urban rail transit, with 131 projects in 2016, 92 projects in 2017 and 80 projects in 2018.
Massive investment will be pumped into 54 highways, 50 airports and 10 waterway projects. More than 2,000 km of new railway lines will be added, the report said.
The government will focus on boosting the economy of northeast China, with more than $246 billion being readied for investment in the region that has seen some of the slowest industrial growth in recent years.
“Home to numerous heavy industrial companies and state-owned ranches, the NE region reported some of China's slowest economic growth rates in the first quarter of this year, with even a negative growth in Liaoning Province - the first economic contraction among the country's provincial economies in the past seven years,” a state media report said.
The report said at least three industrial cities in the region witnessed negative growth rate last year: Daqing, known for its enormous oil field managed by the China National Petroleum Corp, and Jixi and Qitaihe, home to coal mines affiliated to debt-laden state-owned Longmay Group.
The new plan for the region will be different from 2003 plans, since those targeted the livelihood of local residents while the new plan aims to transform the local development model, an official said.