Zhang Ping: RMB 4 Trillion Stimulus Package Will

Allow No Redundant Construction

     China allocated RMB 100 billion in central investments in the fourth quarter of 2008 to expand domestic demand, according to Zhang Ping, chairman of the National Development and Reform Commission. The projects covered by this investment will demand around RMB 4 trillion in investments over the next two years. As to fears the package will give rise to unneeded construction, Zhang Ping says: “The RMB 4 trillion package will be spent in six areas. The first is housing projects. The second is any project that meets the demands of farmers and development of the countryside and agriculture. The third is infrastructure. The fourth is health-related, cultural and educational causes. The fifth is ecological and environmental protection, and the sixth is innovation and structural adjustment. And for now there are no investments in industries of large scale productive capacity.” In order to guarantee the proper use of the investment, the departments concerned have organized 24 supervision teams, who are trained in strong supervision and accountability. Zhang Ping also says that according to estimates, the RMB 4 trillion package will drive economic growth up by one percent each year.