Chinese localities start construction of major projects, in boost for economic recovery

Many areas across China have commenced construction of mega projects since the Chinese Lunar New Year holidays, including industrial upgrading, infrastructure and energy projects, in a boost for the ongoing economic recovery, according to media reports on Monday.

On Monday, authorities in East China's Shandong Province held a meeting to promote the construction of major projects, with construction work for more than 1,000 projects started, China Media Group reported.

The projects involve a total investment of about 1.21 trillion yuan ($167.84 billion), according to local media reports in Shandong. Among the projects, 660 were for industrial upgrades and 156 for transport and other infrastructure. In terms of funding, 600 projects were invested in by private enterprises and 338 were carried out by state-owned enterprises.

Shandong is not alone in expediting major investment projects, as work resumed after the Chinese Lunar New Year holidays. In East China's Zhejiang Province, construction work has also commenced on 333 projects with a total investment of 977 billion yuan. In Beijing, 160 projects with a total investment of 247.8 billion yuan are expected to be launched in the first quarter of 2024.

The accelerated implementation of major projects across the country is expected to offer a great boost for investment, which remains a major economic driver, in the first quarter of 2024. This in turn will help support the economic recovery.

Relatively slow growth in investment has weighted on China's economic recovery. In 2023, total fixed-asset investment only grew by 3 percent year-on-year, compared to 5.1 percent growth in 2022. Some economists have forecast that fixed-asset investment could grow around 5 percent in 2024.

Private investment is also vital for driving overall investment, and Chinese localities have stepped up support for private businesses, especially since the Chinese Lunar New Year holidays.

Shandong has taken various measures to support the resumption of work at private businesses following the Chinese Lunar New Year holidays. For example, on Monday, State Grid Yantai Power Supply Co, the local branch of the state-owned power giant, dispatched a special working group to a local firm, Laizhou Sanli Auto Parts Co, which exports auto parts to Europe, North America and many other regions, to help the firm with issues in using electricity.