China to invest US$31 billion in domestic infrastructure to support economy

BEIJING – China’s National Development and Reform Commission has announced plans to invest RMB192 billion (US$31 billion) on roads and an airport in order to increase investment and support a slowing economy. The plan covers five roads to be built in the southern and central provinces of Guangxi, Guangdong and Sichuan, while RMB80 billion will be invested in a third Beijing airport.

Investment has played a key role in China’s growth strategy over the past few decades, but Government efforts to restructure growth models (by reducing unnecessary State spending and boosting domestic consumption) have slowed investment for 2014.

 According to official statistics, investment, which accounted for almost 42% of China’s economic growth, in the first three quarters of 2014 grew at 15.8% -- its slowest pace in almost 13 years. www.webershandwick.cn (ATI).