China to Increase Infrastructure Investments to Prop up Real Economy

Image Source : China Visual

BEIJING, September 27 (TMTPOST) – China will give more financial support for new types of infrastructure in order to stabilize investment and expand domestic demand, and more efforts will be made for technological breakthroughs in key sectors to facilitate industrial transformation, Zhang Zhihua, an official with the National Development and Reform Commission (NDRC) said Monday.

A number of new types of infrastructure construction projects will be accelerated to play an active role in stabilizing investment and expanding domestic infrastructure development. The NDRC will increase the support for new infrastructure and enhance the enthusiasm of social capital to participate in the investment.

In order to increase support for the construction of new infrastructure, in June this year, the State Council issued a special policy of using policy-backed and development-oriented financial instruments to support the construction of major infrastructure and recently launched special re-loans with financial subsidies to support the renewal and renovation of equipment in some areas.

"Both initiatives are to support new types of infrastructure. With the implementation of these policies, a number of new infrastructures construction projects will accelerate the start of implementation, to stabilize investment and expand domestic demand to play a positive role." Zhang added.

To make up for shortcomings and weaknesses, the NDRC will continue to implement infrastructure network improvement projects in small and medium-sized cities in central and western regions, and support the integration of new technologies such as 5G, artificial intelligence, and big data into livelihood facilities. The target is to bridge the digital divide and promote the quality of new infrastructure upgrades and accelerate key core technologies in key areas to enhance the resilience of the industry chain supply chain.

In addition, the NDRC will clarify the priorities of new types of infrastructure, prioritize support for the construction of new infrastructure that meets the urgent needs of the masses, and plays a prominent role in driving the real economy. China is going to encourage the integration of new technologies in energy, mining, and other vertical industries, to create a safe, reliable, and complete system of new infrastructure.