Xu Lin, head of the planning department at the NDRC, China needs more highways, sewage plants and subways, to help the economy.
The National Development and Reform Commission recently announced that the approvals for projects, which were published not along ago, are only part of the future projects planned for China.
“In an economic slowdown, the government has to take some counter-cyclical measures — it’s absolutely normal, and it’s part of macro-economic control,” Xu said at a forum at Peking University. “China still has large demand for infrastructure projects.”
Premier Wen Jiabao raised infrastructure spending and didn’t introduce another stimulus package, leaving the fiscal support to accelerated project approval and tax cuts. In the second quarter the Chinese economy saw an increase of 7.6% compared with the same period last year, the smallest increase since March 2009.
Earlier this month the NDRC published the approvals for several projects, including the building of 2,018 kilometers (1,254 miles) of roads and subways in China. Nomura Holdings Inc. expects these projects to reach a total value of 1 trillion yuan ($158 billion). The NDRC also received green light for other projects including sewage-treatment plants, railroads, warehouses and ports.