China’s infrastructure push to fast-track 102 major projects as Omicron and economic risks loom large in 2022

Cabinet says ‘surmounting obstacles’ and ‘growth stabilisation’ are taking precedence in economic decision-making, along with boosting domestic consumption

In the past, unregulated infrastructure spending raised local government debt and threatened stability of national economy

Reading Time:3 minutes

China’s cabinet has moved to quicken the pace of 102 major infrastructure projects outlined in its 2021-25 development plan. Photo: Xinhua

Published: 4:03pm, 11 Jan 2022Updated: 7:04pm, 11 Jan 2022

Beijing is trumpeting the urgency of its infrastructure construction push, as leaders admit that stabilising the national economy in the first half of this year will be an uphill battle.

The fresh calls for increased consumption and more effective investment came as the world’s second-largest economy is facing new downward pressure, with the spread of Delta and Omicron coronavirus variants in major cities.

“Our economic operations are now at the key stage of surmounting obstacles,” said a statement that followed the State Council meeting chaired by Premier Li Keqiang on Monday. “We must put growth stabilisation in a more prominent position, and firmly implement the strategy of domestic demand expansion.”

China’s cabinet has moved to quicken the pace of 102 major projects outlined in its 2021-25 development plan. Key areas were identified as those concerning food and energy security; advanced manufacturing and hi-tech industries; and affordable housing. Others include infrastructure developments, such as those in support of transport, logistics and telecommunications.

“Obviously, the service sector can hardly see a quick recovery amid scattered pandemic outbreaks,” said Raymond Yeung, chief Greater China economist at ANZ Bank.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x