China invests US$84 billion into economy

By Andy Brown17 January 2019

China rail

The Chinese government are once again using infrastructure projects to boost the country’s economy

China’s central bank has injected Rmb570 billion (US84 billion) into the country’s banking system in an attempt to boost liquidity and promote lending, as the Chinese economy slows.

However, it is thought that the Chinese central bank will not be loosening monetary policy on the same scale as was deployed in 2008 to 2010 and in 2014 to 2015, which resulted in large increases in debt.

It is expected that future Chinese fiscal policy will come in the form of stimulus efforts – China has approved over US$125 billion in new railway projects during the past few months. 

The Chinese government had previously pulled back on some infrastructure investment over fears that a number of projects, especially new subway lines, were underutilised and had increased public debt.

However, as the growth slowdown in the economy became evident, this policy has been overturned, and infrastructure investment has increased once again.

Latest News
Combilift launches turbine component carrier
Materials handling equipment specialist enters the offshore wind supply arena with new transporter system
SAIA reorganizes MEWP Council
The SAIA’s MEWP Council has assembled a new team and updated its goals and objectives for coming year
Video interview: where is construction on its tech journey?
Andy Verone, Chief Strategy Officer at Contruent on the biggest productivity gains tech can bring