CHINA AND INFRASTRUCTURE

CHINA TO INVEST IN INFRASTRUCTURE TO BOLSTER GROWTH: REPORT

"China has to rely on infrastructure investment to manage economic slowdown.”

Zhou Xin and Nick Edwards

AsiaOne, Apr 23, 2012

BEIJING - China is set to speed up spending on roads, railways and utilities to boost economic growth, the official China Securities Journal said on Monday, citing government economists.

The increased fiscal spending on infrastructure, which has already started, will fall within Beijing's framework of policy"fine-tuning" instead of another massive stimulus like the one Beijing launched at the end of 2008.

Zhang Hanya, the head of China's investment association, a think tank affiliated with China's economic planning agency, was quoted as saying that boosting investment is the only choice for Beijing to bolster growth since consumption is always stable and exports are meeting overseas demands.

Spending on roads, bridges, subways and airports will boom as investments in industrial facilities will worsen overcapacity and more property investments are discouraged by Beijing, Zhang said.

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