China to Invest Multiple Billions in Infrastructure Improvements

In response to the global economic slowdown beginning to challenge the country, China’s State Council—its Cabinet—will spend (US) $570 Billion over the next two years to finance programs in 10 major areas, most of which deal with infrastructure.

In addition to allocating money for reconstruction of areas hit by a major earthquake on May 12, the stimulus program includes such projects as building a gas pipeline to serve the economic engines of Guangzhou and Hong Kong, building and expanding nuclear power plants and water conservancy undertakings in other areas, among others. Spending of $18 Billion for fourth quarter 2008 projects is already underway.

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