According to the Shanghai-based China Business News, the transport ministry is planning to spend 5 trillion yuan ($730 billion) on road and port infrastructure projects over the next three to five years, in a bid to stimulate domestic demand.

In accordance with the saying that the massive spending was being considered as “such investment can produce an immediate effect (on domestic demand)”, an anonymous source with the ministry was cited.

The report said the 5 trillion yuan figure includes funds the government had already planned to be used for highway construction projects.

It also said, about 140 billion yuan will be spent on roads each year during the 11th Five-Year Plan period (2006-10), and 100 billion yuan a year during the 12th Five-Year Plan period (2210-20). Read more…

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$730b, demand, domestic, infrastructure, stimulate