China has approved investment projects worth 7 trillion yuan (around $1.1 trillion) on Tuesday, Jan. 06, the Global Times reported.
Bloomberg revealed on Monday night that China is accelerating the 300 infrastructure projects worth 7 trillion yuan as part of a broader investment plan from late 2014 through 2016. This investment plan is worth 10 trillion yuan in total.
The State Council approved these projects to boost growth that is in danger of falling below 7 percent, China's Cabinet member Li Pumin, spokesperson of the National Development and Reform Commission (NDRC), revealed.
According to Zhang Yasheng, secretary-general of the Academic Committee at the NDRC, the approval of the investment projects will help stabilize the economy and develop the water conservancy and other unbudgeted sectors.
The infrastructure projects in the investment plan are not approved hastily for stimulating the economy, Zhang told the Global Times on Tuesday. The extensive investment does not mean the government will start a new round of major economic stimulus, Zhang added.
Meanwhile, the NDRC will facilitate the infrastructure projects including transportation, clean energy and water conservatory as part of the investment plan which started in 2014.
The National Bureau of Statistics released data on Thursday, Jan. 01, showing the manufacturing purchasing manager's index (PMI) at 50.1 in Dec. 2014. The result shows that the economy is still facing downward pressure. The PMI is China's key measure of a factory activity, Bloomberg reported.
According to Wang Jun, an economist at Beijing-based think tank China Center for International Economic Exchanges, it is normal to see investment financed by government accelerated due to the pressure on the central and local governments to complete the 12th Five-Year Plan on time. 2015 is the last year for the said plan, he added.