BEIJING, Nov. 27 (Xinhua) -- China's total social investment is predicted to reach 18 trillion yuan (2.64 trillion U.S. dollars) in 2009, the National Development and Reform Committee (NDRC), the country's top economic planner, announced here on Thursday.

"China's total social investment exceeded 13 trillion yuan in 2007 and is expected to top 16 trillion yuan this year," said NDRC head Zhang Ping. "The 4 trillion stimulus package is only part of the whole picture."

Zhang said the central stimulus package was roughly divided into seven parts, with 1.8 trillion yuan going towards large-scale infrastructure projects such as railways, roads, airports and the national grid.

Areas most affected by the May 12 earthquake in the southwestern Sichuan Province will get 1 trillion yuan for reconstruction.

The rest of the stimulus money will be spent on affordable housing, rural welfare, infrastructure, medical and cultural development, environmental protection and industrial restructuring.

Next year's total social investment will have the same focus as the central plan, which involves improving living standards and promoting rural development, according to Zhang.

Media reports on Nov. 25 said 24 of China's 33 provinces have issued local investment plans for the next two to five years, with the southern Yunnan Province taking the lead by 3 trillion yuan planned for five years.

The total figure was estimated to climb near 18 trillion yuan, almost equal to the NDRC prediction for next year's social investment, arousing concerns that the "investment rush" could lead to overlapping projects.

While welcoming provincial governments' participation in boosting domestic demand, Zhang said the NDRC would impose a strict review and approval procedure on all projects submitted by local economic planners.

"Only those projects in accordance with the national development plan will be considered," he stressed.

The NDRC will give priority to local construction plans that focus on industrial restructuring, raising living standards and environmental improvement, according to Zhang.

"We will closely examine provincial projects and make sure to stamp out potential duplication," Zhang added.

 

 

China's 4 trillion yuan stimulus to boost economy, domestic demand

 

BEIJING, Nov. 9 (Xinhua) -- China said on Sunday it will loosen credit conditions, cut taxes and embark on a massive infrastructure spending program in a wide-ranging effort to offset adverse global economic conditions by boosting domestic demand.

This is a shift long advocated by analysts of the Chinese economy and by some within the government. It comes amid indications that economic growth, exports and various industries are slowing.

A stimulus package estimated at 4 trillion yuan (about 570 billion U.S. dollars) will be spent over the next two years to finance programs in 10 major areas, such as low-income housing, rural infrastructure, water, electricity, transportation, the environment, technological innovation and rebuilding from several disasters, most notably the May 12 earthquake.

The policies include a comprehensive reform in value-added taxes, which would cut industry costs by 120 billion yuan. Full story

China plans 10 major steps to spark growth as fiscal, monetary policies ease

BEIJING, Nov. 9 (Xinhua) -- China will take 10 major steps to stimulate domestic consumption and growth as it turns to an "active" fiscal policy and "moderately easy" monetary policy, an executive meeting of the State Council said on Sunday. Full story

China's VAT reform to shed corporate tax burden by 120 bln yuan

BEIJING, Nov. 9 (Xinhua)-- China announced on Sunday it would spread a reform of its value-added tax regime to all industries nationwide, which could cut the tax burden on enterprises by 120 billion yuan (about 17.6 billion U.S. dollars). Full story

China to stabilize global financial markets by maintaining growth

SAO PAULO, Nov. 8 (Xinhua) -- China will help stabilize international financial markets by maintaining its economic growth and expanding domestic demand, Zhou Xiaochuan, governor of China's central bank, said here Saturday.

The People's Bank of China is closely following the situation in international financial markets to make its policies on further readjustment of interest rate, he said. Full story

China tries to revive economy despite daunting challenges

BEIJING, Nov. 9 (Xinhua) -- Although China doesn't celebrate Christmas, Lou Qijun is one of the many Chinese toy and gift manufacturers who anticipates a visit from Santa Claus every year in the form of seasonal orders from the Europe and North America.

Not so this year, says Lou, chairman of Yiwu Qiling Toys Co. Ltd., a leading toy producer in east China's Yiwu City, Zhejiang Province, after returning from the Canton Fair, the country's biggest trade show which concluded on Thursday. Full story

China adopts flexible monetary policy to boost economy, cope with crisis

BEIJING, Oct. 31 (Xinhua) -- China's decision to cut interest rates on Thursday is part of its flexible monetary policy to cope with the world financial crisis and boost domestic economy, a central bank spokesman said on Friday.

Li Chao, spokesman of the People's Bank of China (PBOC) explained the government's cut in interest rates for the second time in one month. Full story

China should pursue a stable monetary policy, says former banker

BEIJING, Nov. 3 (Xinhua) -- China should pursue a stable monetary policy in the face of risks from both inflation and falling prices, as it is not urgent to cut interest rates, the China Securities Journal quoted a former banker as saying on Monday.

Wu Xiaoling, former deputy governor of the People's Bank of China, the country's central bank, said over the weekend that fiscal policies and other policies were of more importance than monetary policies to maintain the stability of the country's economy amid the current complicated situation both at home and abroad. Full story

NBS chief: China's economy in good shape despite global financial turmoil

BEIJING, Nov. 2 (Xinhua) -- China's economy is in good shape despite the changing economic environment, and it will maintain stable and relatively fast growth, National Bureau of Statistics (NBS) chief Ma Jiantang told Xinhua on Sunday.

"The fundamentals of China's economy remain unchanged despite the changing world economic environment," the new NBS director said. "We should be confident about the country's economic outlook." Full story

Rating agency report: China's GDP to slow to 9.4% in 2008

BEIJING, Nov. 2 (Xinhua) -- China's gross domestic product (GDP) growth is expected to slow to 9.4 percent in 2008 from last year's 11.4 percent as the shrinking exports will cool the world's fourth largest economy, according to a Chinese credit rating agency report on Sunday.

The fundamentals of the economy are sound, but falling export orders would take a toll on the national economy in the short term, and domestic consumption needed time to play a bigger role, said the report released by the China Chengxin International Credit Rating Co. (CCXI), a joint venture of China's first rating agency China Chengxin Credit Management Co. Ltd. and U.S.-based Moody's Corporation. Full story

Global financial crisis spills over China's labor market

BEIJING, Nov. 1 (Xinhua) -- In the space of a year, Yang Chanjuan's career plan has changed direction. A soon-to-graduate college student in economics, Yang is feeling her fortunes being buffeted by the financial crisis.

Yang was recently told by her schoolmates already working in the financial sector that their companies would cut staff, or there would no bonus this year. Amid the turmoil and full of uncertainty, a job in banking or securities company was no longer desirable to her. As a result, she decided to apply for a government job. Full story

Source: Xinhua