The construction of the Nansan Island Bridge in Zhanjiang, South China's Guangdong Province is completed on October 23, 2022. It is a key infrastructure project in Guangdong and a part of Zhanjiang city's beltway, which will boost the development of the local tourism industry. Photo: VCG

China will allocate new funding under the central government's budget around the Spring Festival holidays to support the construction of key basic infrastructure projects this year, especially information networks in remote regions in the central and western areas, an official of China's top economic planner said on Wednesday.

The National Development and Reform Commission (NDRC) vowed to work with relevant parties to guide more social capital into these projects, using measures including policy-oriented development financial tools and medium- to long-term loans for the manufacturing industry, NDRC official Jin Xiandong said at a press conference.  

Chinese authorities will support local governments' investment in new basic infrastructure through special-purpose bonds, and help localities build platforms for public technology services and digital transformation. 

"New basic infrastructure is an important component of modern basic infrastructure, and an important foundation to promote social digital transformation, intelligent upgrades and integrated innovation," Jin said. He said that the construction of new basic infrastructure had built up great momentum in recent years, becoming an important driver in stabilizing investment, benefiting people's livelihoods and facilitating growth.

With China on a firm recovery trajectory this year, observers said that investment and consumption will play a growing role in the economy, cushioning the country against a possible global recession and other external headwinds.

Officials said that the nation will expand effective investment to scale up domestic demand. This will allow the country to cope with unexpected shocks and give investment a key role in stabilizing the economy's operation within a reasonable range.

As the total saving rate remains high, the country will guide investment in the right direction, and identify synergies that involve promoting consumption and investment. 

In 2022, China's GDP grew 3 percent year-on-year to 121 trillion yuan ($18 trillion), according to data released by the National Bureau of Statistics on Tuesday. 

Fixed-asset investment rose 5.1 percent, the highest among the three major drivers, and industrial added-value was up 3.6 percent, while retail sales dived 0.2 percent.


Zhou Maohua, an economist at Everbright Bank, told the Global Times that fixed-asset investment is predicted to expand 4 percent in 2023, led by moderate growth in basic infrastructure investment, and a relatively high jump in manufacturing investment. 

The property sector, a drag on the overall economy last year, will also show steady improvement in 2023, Zhou noted. 

Global Times