Chinese economic stimulus program

[4][5][6] The World Bank subsequently went on to recommend similar public works spending campaigns to western governments experiencing the effects of the Great Recession, but the US and EU instead decided to pursue long-term policies of quantitative easing.

A statement on the government's website said the State Council of the People's Republic of China had approved a plan to invest 4 trillion yuan in infrastructure and social welfare by the end of 2010.

[8] The stimulus package will be invested in key areas such as housing, rural infrastructure, transportation, health and education, environment, industry, disaster rebuilding, income-building, tax cuts, and finance.

Rural projects in the pipeline included building public amenities, resettling nomads, supporting agriculture works, and providing safe drinking water.

Technology advancement mainly targeted at upgrading the Chinese industrial sector, gearing towards high-end production to move away from the current export-oriented and labor-intensive mode of growth.

To ensure sustainable development, the Chinese government also allocated some 210 billion yuan, or 5.3% of the stimulus package for promoting energy saving and gas emission cuts, and environmental engineering projects.

[16] Due to the success of the economic stimulus plan, the central government tightened financial regulation in order to restrict lending amid fears of a property bubble.

[19] In September 2024, the Chinese government has planned to issue 2 trillion yuan ($284.43 billion USD) in special sovereign bonds and cut 50 basis points to stimulate the economy.