China Has $1.5 Trillion Spending Plan, Reuters Says
China may spend as much as $1.5 trillion on seven strategic industries over the next five years, Reuters reported, citing an unidentified source with direct knowledge of the matter.
The nation may invest 2 trillion yuan ($300 billion) annually in the alternative energy, biotechnology, information technology, high-end equipment manufacturing, advanced materials, alternative-fuel cars and energy-efficient and environmental technology industries, Reuters said yesterday.
No comment was immediately available from the National Development and Reform Commission, the planning agency, today.
Targeting key industries will help to support investment growth even as spending on infrastructure slows because of the end of a stimulus program, UBS AG. said in a report this week. The favored sectors may get easier access to credit and land and swifter project approvals than other ventures, Beijing-based economist Wang Tao said.
Investment growth “will continue to remain robust,” Wang said, also citing government plans to develop inland regions.
UBS sees China posting economic growth of 9 percent next year after an estimated 10 percent expansion in 2010.
China’s leaders will consider the investment plan at this month’s Central Economic Work Conference, according to Reuters.
The Warren Buffett-invested carmaker BYD Co. and wind turbine maker Xinjiang Goldwind Science & Technology Co. are companies in the named industries.
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