Boosting infrastructure spend will not get China out of trouble
Beijing plans to stimulate the economy and meet growth targets amid the coronavirus outbreak and US trade war
10 March 2020 - 16:19
With the coronavirus shutting down large parts of China, plans for big infrastructure spending to stimulate the economy are rising. But what will be built, and for whom?
The scale seems striking. Several provinces have cumulatively announced plans to build or restart about 25-trillion yuan of projects over the next few years. For 2020, that amounts to about 3.5-trillion yuan of expenditure. To finance this building spree, about 950-billion yuan of special bonds were issued in the first two months of the year, with close to 70% for infrastructure...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.