China Bets $1.8 Trillion of Construction Will Boost Economy
- Government is relying on its playbook of driving up investment
- Debt pressure will likely rise as provinces spend more
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Chinese provinces plan to boost spending on major construction projects by almost a fifth this year as Beijing continues to rely on infrastructure to spur an economy being hindered by consumers still bruised from years of pandemic restrictions.
About two thirds of China’s regions have announced spending plans for major projects such as transport infrastructure, energy generation and industrial parks this year, adding up to more than 12.2 trillion yuan ($1.8 trillion), according to a Bloomberg analysis of government statements and state-media reports. That’s an increase of 17% compared to last year.