China plans to ramp up infrastructure construction in order to drive economic growth and boost domestic demand following the economic hit of the country’s stringent Covid restrictions.
Citing a meeting of economists chaired by President Xi Jinping, Chinese state media reported the plans, aimed at providing a shot in the arm to the world’s second-largest economy.
China has seen a resurgence of Covid-19 cases since the start of the year, but has stuck firm to its “zero Covid” policy, resorting to strict lockdown measures to curb the spread of disease.
These measures have seen reduced output and consumer spending, and combined with existing issues such as a poorly performing property market have put the Chinese economy in a precarious position moving forward.
In order to boost economic activity, China plans to bring forward existing infrastructure plans as well as providing immediate investment for new projects deemed to be conducive to industrial growth.
The plans also include renewed investment in the country’s energy infrastructure, taking in both existing oil and gas networks as well as promoting new clean energy projects. The IT sector can expect to receive significant funding, with the government targeting continued growth in super computing and artificial intelligence platforms.
Steps will also be taken to enhance national security, though it is unclear exactly what measures are proposed.