China fixed-asset investor approvals nearly doubled from 2022 to $218 Billion

Joe Cash

BEIJING, (Reuters) – China’s state planner approved 1.48 Trillion Yuan ($218.35Billion) worth fixed asset investment projects for 2022. This was nearly twice the amount of the previous years, as authorities geared-up to support the COVID ravaged economy.

According to a spokesperson for National Development and Reform Commission, 109 projects were approved in 2013. They were mainly in transportation, energy conservation, and information technology, he told reporters in Beijing today.

China has been increasing infrastructure spending to boost economic growth. The country’s gross domestic product (GDP), which fell to its lowest level in almost a century over 2022, only grew by 3.0% compared to a year ago, far below the official target of 5.5% set at the beginning last year.

The spokesperson for the NDRC noted that China’s economic recovery is still complicated due to shrinking demand, shocks in supply chains, and turbulence within the global economy.

China’s December exports contracted 9.9% in December due to a cooling global demand. Imports decreased by 7.5%.

Economists expect that domestic demand will gradually recover over the next months. However, for the first quarter of 2018, we will still experience a bumpy transitional period when we might actually see contraction rather than growth,” Jing Liu (HSBC chief economist for Greater China) told Reuters in a conference call after Tuesday’s release of 2022 data.

She said that HSBC expects GDP growth to be 5.8% this year.

Reporters were informed by the NDRC about its plans to increase investment in the country, especially from foreign investors. These investments should be directed towards advanced manufacturing and service sectors and encouraged to pursue developments in new technologies and energy conservation.

Officials also commented on the country’s supply of grain, stating that the NDRC could provide safe grain supply despite the market challenges.

(Reporting by Joe Cash, Shen Yan; Editing By Kim Coghill