China Sees Significant Increase in Investment in Infrastructure Construction
In the first half of the year, investment in new infrastructure construction in China has surged by 16.2% compared to the same period last year. This increase in investment has boosted growth momentum and stimulated economic development. The expansion of effective investment has been a key factor in driving this growth.
One notable project that contributed to this increase is the artificial intelligence computing center in Yanta District, Xi’an City, Shaanxi Province. With the support of a special loan of 230 million yuan from the China Development Bank, the construction of the center was accelerated and put into use. This project showcases the country’s commitment to advancing technological infrastructure.
Furthermore, the Science and Technology Innovation Board has witnessed significant growth with 41 newly listed companies raising a total of 87.7 billion yuan through initial public offerings (IPOs) in the first half of the year. The R&D investment in industries such as new generation information technology, biomedicine, and high-end equipment has also continued to increase. This reflects the acceleration of innovative capital formation and highlights the importance of investment in high-tech industries.
The emphasis on investment and infrastructure construction was reiterated by General Secretary Xi Jinping during the second collective study of the Political Bureau of the CPC Central Committee. He stressed the need to improve and expand the investment mechanism, deploy new infrastructure construction, and increase investment in high-tech and strategic emerging industries to stimulate private investment.
The recent meeting of the Political Bureau of the CPC Central Committee on July 24 further emphasized the leading role of government investment and the accelerated issuance and use of local government special bonds. Policies and measures to promote private investment were also discussed. The implementation of these decisions will contribute to the continued recovery of the economy and further enhance domestic demand.
In the first half of this year, national fixed asset investment reached 24,311.3 billion yuan, representing a year-on-year increase of 3.8%. Infrastructure investment and manufacturing investment increased by 7.2% and 6% respectively, and investment in key areas was strengthened. The investment structure has been continuously optimized to ensure sustainable growth.
The construction of traditional infrastructure has remained steady, with major projects progressing smoothly. Investments in railway transportation, waterways, and water conservancy have played a crucial role in expanding domestic demand and stabilizing growth. The financing support from the Chinese Development Bank and other financial institutions has enabled the completion of these projects.
China has also accelerated the deployment of new infrastructure, including 5G, charging facilities, and big data centers. The financing needs of these projects have been met through innovative financing plans and special loans. The expansion of new infrastructure has led to a 16.2% increase in investment in new infrastructure construction, with a particular focus on new information infrastructure and integrated infrastructure.
Investment in infrastructure and public facilities management in the field of people’s livelihood has seen significant growth. Inclusive childcare, elderly care, national fitness facilities, and the reconstruction of old residential areas have all received substantial investment. The issuance of special bonds for project construction has supported local development, strengthened weak areas, and improved people’s livelihood.
In line with General Secretary Xi Jinping’s emphasis on promoting innovation, investment in high-tech industries has continued to expand. This has been instrumental in optimizing the supply structure and increasing investment in innovation. The investment in high-tech industries has grown by 12.5% year-on-year, outpacing the overall investment growth.
The transformation and upgrading of traditional manufacturing industries have also witnessed a significant increase in investment. Projects such as the “Lighthouse Factory” in Changsha No. 18 Factory of Sany Heavy Industry Co., Ltd. have become models of smart manufacturing and digital transformation. This investment has been essential in driving the growth of the manufacturing sector.
Overall, China’s investment in infrastructure construction has seen substantial growth, laying a strong foundation for economic development and stimulating innovation. The emphasis on effective investment, new infrastructure deployment, and private investment will continue to drive economic recovery and long-term growth.