Shafaqna English- Economists and a state adviser believe that by pushing forward with pre‑funded national infrastructure schemes, China can keep economic expansion on track this year, making large‑scale stimulus measures less necessary.
The government in Beijing is determined to tackle the unforeseen downturn in investment across all sectors, after data released on Wednesday confirmed it has held back growth, all while strictly managing provincial and municipal budgets.
This drop in investment coincides with tighter oversight of capital spending by local authorities, a situation that officials attribute to wasteful infrastructure schemes, excess industrial capacity, and deflation‑driven price competition between producers.
Source: Reuters