China To Focus On Infrastructure Investment To Combat Economic Slowdown, Identifies 102 Mega Projects Including High Speed Rail Expansion By 12000 km

Chinese government is planning to expedite the rollout of major infrastructure projects in a bid to reverse incipient signs of economic slowdown.

The country's top economic planning agency announced on Tuesday (Jan 19) that it will moderately front-load infrastructure investment to help drive the implementation of 102 mega projects earmarked for the 14th Five-Year Plan period (2021-25).

Given how contracting domestic demand and sluggish consumption growth have emerged as two major weaknesses in the Chinese economy, infrastructure investment is seen a critical requirement.

At a mere 0.4 percent annual growth rate, China's infrastructure investment in 2021 was almost flat compared to the previous year. The infrastructure investment is estimated to grow 5-percent in 2022.

Hit by headwinds on multiple fronts including domestic COVID-19, power crisis, supply chain bottlenecks and real estate sector debacles, China’s economy grew by a tepid 4 per cent in the fourth quarter of 2021 slowing from the 4.9 per cent growth in the third (July to September) quarter.

While China 's GDP expanded by 8.1 per cent in 2021 (boosted by 18.3 percent growth in the first and 7.9 percent in second quarter), the country's GDP growth is projected to moderate at around 5.5 percent in 2022.

Infrastructure Pipeline comprising 102 mega project

The mega projects identified for expedited implementation coves many infrastructural areas including roads, railways, public transit systems, airports, nuclear power plants, power transmission lines and pipelines.

Channeling further investment in to expanding the country's already impressive high-speed rail network is among measures identified as a way to curb an economic slowdown.

China, which has the world’s largest high-speed railway network, plans to expand its length to 50,000km by 2025, 12,000km longer than 38,000km that was operational at the end of 2020. China aims to double the high-speed network to 100,000km by 2031.

Another area identified as a key focus area is to widen use of its indigenously developed BeiDou Navigation Satellite System (BDS) at home and abroad.

BDS is a global navigation system constructed and operated independently by China. As a significant space infrastructure, the BDS provides all-time, all-weather and high-accuracy positioning, navigation and timing services to global users.

BDS is positioned as a rival US Global Positioning System (GPS), and will provide services to transportation, emergency medical rescue and city planning and management areas.

Local Government Unveil Infrastructure Roadmap

Aligning itself with the national objective, the local government in Shanghai announced that it will accelerate projects ranging from shipping and public transit to water conservation and sewage systems.