As China’s GDP hit a three-year low of 7.6 percent in the second quarter, some of China’s biggest cities have responded with announcements of huge new spending plans.
On Tuesday, Tianjin, a municipality of about 13 million in northern China, announced a four year, 1.5 trillion yuan ($236 billion) investment in 10 industries. The main industrial focus of the investment will be on aerospace, biotechnology, “green” food, new materials, port equipment, and petrochemicals, according to China Daily.
Earlier in the week Chongqing announced a similar policy that will invest 1.5 trillion yuan into seven industries over three years. Electronics and IT, automobiles, energy and advanced equipment, are among the industries Chongqing will focus on.
In addition to Tianjin and Chongqing, a number of other cities have announced stimulus plans, including: Guangzhou, Nanjing, and Ningbo. And in Changsha, their 829 billion yuan (over $130 billion) plan will focus mainly on upgrading the airport and subway lines.
“We continue to expect these city-level initiatives to help the economy rebound in the second half of this year,” said Zhang Zhiwei, the chief economist in China with Nomura Securities Co Ltd, told China Daily.
These large investments are part of the reasons why the economic future of many Chinese cities is so “dynamic.”
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Photo: Flickr/Jack Zalium
