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The highest planning authority said China Today, Saturday, it identified a second group of public investment projects that include flood control and disaster relief programs, as part of a plan to issue bonds and investments that it announced last October to boost the economy.
Under the latest tranche, China has allocated more than 800 billion yuan worth of its additional government bonds amounting to 1 trillion yuan ($140 billion) in the fourth quarter, as it focuses on taking financial measures to support its faltering economy.
The National Development and Reform Commission said – in a statement today – that it has identified 9,600 projects with planned investments not exceeding 560 billion yuan ($78.4 billion).
China (the second largest economy in the world) is struggling to regain its position after the pandemic Covid-19Economic policymakers face obstacles due to the decline in consumer demand, exports, foreign investment, and the worsening real estate crisis.
The additional issuance of bonds worth one trillion yuan will increase the budget deficit ratio for 2023 to about 3.8% from 3%, Xinhua News Agency said.
But the National Development Commission said, “The construction of the projects will improve the flood control system, emergency response mechanism and disaster relief capabilities, and will also provide better protection for people's lives and property, so it is very important.”
She added that she will coordinate with other government agencies to ensure the speedy allocation of funds for investment, and to maintain high standards of quality in project implementation.
And raised Disappointing economic recovery In China – during the post-Corona phase – there are great doubts about the foundations of the amazing growth that China has achieved over the decades, placing Beijing before a difficult choice in 2024 and beyond: either bear the burden of more debt, or achieve less growth.
Expectations were that once China lifted the strict restrictions it imposed to contain the spread of the Corona virus, consumers would return to shopping malls, the flow of foreign investments would continue, factory activity would increase, and land auctions and home sales would stabilize.
