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Division
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PO Box 7970
Madison, WI 53707-7970
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Vol.
8 #2, November 2008
Chinese Economic Stimulus Plan
On Sunday, November 9, the Chinese government announced a $586 billion
package of infrastructure projects in an effort to maintain growth at
home and combat the effects of the global slowdown. The primary
focus will be on new railways, subways, and airports with an emphasis
on communities in southwest China that were affected by major
earthquakes in May. The full program will include low-income
housing, electricity, water, rural infrastructure, environmental
protection, and technological innovation projects.
This is the largest economic stimulus package announced by the Chinese
government. China's direct government spending is a smaller
percentage of economic activity compared to that of the United States
or European countries, but the Chinese central government maintains
significant control over investment spending by other agencies in the
country. While China's economy has been growing at double-digit
levels for several years, the global slowdown has had a dampening
effect. Growth in exports has slowed, stock and propert markets
have been depressed, and consumer confidence has been negatively
impacted. While a major goal of the spending effort is to
increase domestic production and bolster consumer spending,
opportunities will be created for international equipment suppliers.
To learn more about the Chinese market, contact Ms. Beng Yeap,
Commerce's Asia Specialist, beng.yeap@wisconsin.gov, (608) 266-1480.
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