China promotes public investment

Some experts believe that, if investment is effective, the GDP target of 5.5% increase in 2022 of the world’s No. 2 economy is likely to be achieved.

Hubei province, with the Wuhan epidemic center being the hardest hit by the epidemic since 2020, is investing heavily in infrastructure, real estate, and key industries. In the first months of the year, the lowest capital increase was 12.5%, the highest was 27% over the same period.

Localities such as Jiangxi and Guangzhou invest heavily in high-speed railway projects and new energy.

China continues to apply the traditional solution of investing heavily in infrastructure to stimulate growth. (Artwork – Photo: Bloomberg)

Experts say that in difficult times, strong investment in infrastructure plays an important role in keeping the growth pace. More than two-thirds of Chinese provinces and cities disbursed investment in fixed assets, increasing by double digits over the same period.

“From the target of stabilizing growth, in the first three months of the year, more than 35,000 projects were deployed, far exceeding the same period last year. Money is continuing to be disbursed strongly into infrastructure and key technology industries,” he said. Yang Guang Pu, Center for Development Research, State Council of China, said.

In addition to the traditional infrastructure sector such as roads and railways, the construction sector is also prioritized to create many jobs. In which, more than half of the money will be invested heavily in the fields of technology, new materials, and cloud computing.

“Monetary policy should remain at the center, giving priority to micro, small and medium-sized enterprises to borrow capital to create jobs. It is necessary to strengthen coordination between macro policies, minimize the impact of controls. epidemic on the supply chain,” said Mr. Xu Hong Cai, deputy director of the Economic Policy Committee, China Association for Policy Science.

Efforts to loosen control measures in industries such as real estate and technology are also ways to promote growth. With real estate, accounting for about 20% of GDP growth, the government has relaxed quite harsh capital management measures for nearly 2 years now.

China continues to apply the traditional solution of investing heavily in infrastructure to stimulate growth. Some experts believe that it is not only meaningful in the short term, but also affects sustainable growth in the long term if the problem of public debt is well solved.

China faces a big wave of divestment

VTV.vn – Before the US Federal Reserve (FED) stepped up to tighten monetary policy, China is forecasted to face the trend of foreign investors withdrawing capital from this market.

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