Tianjin industries in line for capital injection over next four years
China’s northeast city of Tianjin plans to invest 1.5 trillion yuan (US$236 billion) in 10 major industries over the next four years, the local government said on its website, joining other cities in rolling out big spending plans to boost its economy.
Tianjin plans to concentrate on the development of petrochemicals, port equipment, new energy cars and aerospace industries, according to an investment plan released on the local government website on Tuesday.
Other sectors targeted include biotechnology, food and new materials, the report said.
Tianjin’s stimulus plans come just a day after the southwest city of Chongqing announced a similar policy to pump 1.5 trillion yuan into seven major industries over the next three years.
Tianjin said the plan was aimed at coping with “downward pressure on the economy” and to promote development of new sectors.
Both Tianjin and Chongqing did not say how the spending would be paid for.
Changsha, the capital city of the southern province of Hunan, last month announced a 829 billion yuan investment stimulus project. But the plan, worth 147 percent of the city’s 2011 economic output, drew scepticism as it was unclear how it would be funded.
Despite the evident economic slowdown, China’s central government has been reluctant to authorise a repeat of the nationwide 4 trillion yuan investment stimulus of 2008/09, as the country is still smarting from the debt left in its wake.
Other Chinese cities to have unveiled big spending plans in recent months include Wuhan, Ningbo and Guizhou, according to state news agency Xinhua.