Subway Plans for China to Boost Economy
Created: 2012-09-07 12:19 EST
Chinese authorities are planning 25 new subway and inner-city transit projects to boost the economy, the National Development and Reform Commission announced on Wednesday.
The China Association of Metros, an organization under direct supervision of the Commission, said the new projects would allow 40 cities to have subway systems by the year 2020.
The initiative would invest nearly 127 billion US dollars over the next three to eight years. It’s part of an infrastructure rollout totaling more than 150 billion dollars that Chinese leaders are hoping will boost the slowing economy.
Other projects planned include highways, ports and airport runways.
Economic indicators so far for the second half of this year are showing a continued downswing from the second quarter. China’s export market has been dented by slowing global demands, and regulators are now looking at other ways to keep the economy afloat.
Injecting cash into infrastructure may not resolve long-term, underlying problems with China’s economy though. Most public projects yield low returns, and for China in particular, corruption and misuse of public funds have been a consistent problem.