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Packaging power for the economy
(China Daily)
Updated: 2008-11-11 09:30

Packaging power for the economy

This bridge being built in Nanjing, Jiangsu province, will run across the Yangtze, China's longest river. Scheduled for completion in 2011, the bridge is part of the 220-billion-yuan ($32-billion) Beijing-Shanghai High Speed Railway project. China is increasing its spending on infrastructure to prevent its economy from slowing further because of the global financial crisis. [China Daily]

China hasn't let the world down. By rolling out its largest financial stimulus package, it is shouldering the responsibility of adding a new driving force for global economic growth in order to overcome the financial crisis.

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The State Council, the country's cabinet, announced a 4-trillion-yuan ($586 billion) investment package over the weekend to spur domestic demand and boost the slowing economy. The amount, about one-sixth of the country's GDP last year, indicates the seriousness with which the government views the global financial crisis and its resolve to help overcome it.

The money will be spent from now till 2010, out of which 120 billion yuan is for the fourth quarter of this year. It is expected to generate an overall investment of up to 400 billion yuan, if the matching resources from the local governments and communities are taken into account.

Economists say the National People's Congress, China's top legislature, could grant the State Council even greater spending power if more money is needed for maintaining the growth rate and creating jobs.

Exporters to China, irrespective of whether they supply materials or are engaged in services, will benefit from China's growth and could create jobs in their countries and regions.

A financial stimulus package of $586 billion is a huge amount for an economy that is one-fifth the size of the US. But China's aim is not just to spend its way out of a recession. Many aspects of the plan are tailored to improve the quality of people's life, including better housing, better schools, better healthcare and a better environment, and to achieve sustainable development. Their implementation will help social programs and community interests flourish.

Packaging power for the economy


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