China’s Ten Steps to Spark Growth
China has a plan to stimulate domestic consumption and growth. China also has billions, (trillions?) of dollars to work with considering the growth of the past.
1. Housing: Build more affordable and low-rent housing and speed up the clearing of slums. Nomads will be encouraged to settle down. 2. Rural infrastructure: Speed up rural infrastructure construction. Improve roads and power grids in the countryside, spread the use of methane and ensure drinking water safety.
3. Transportation: Accelerate the expansion of the transport network - more dedicated passenger rail links and coal routes.
4. Health and education: Beef up the health and medical service by improving the grass roots medical system. Accelerate the development of the cultural and education sectors and junior high schools in rural areas.
5. Environment: Improve environmental protection by enhancing the construction of sewage and rubbish treatment facilities. Prevent water pollution in key areas. Accelerate green belt and natural forest planting programs. Increase support for energy conservation and pollution-control projects.
6. Industry: Enhance innovation and industrial restructuring. Support the development of the high-tech and service industries.
7. Disaster rebuilding: Speed reconstruction in areas hit by the May 12 earthquake.
8. Incomes: Raise average incomes in rural and urban areas. Raise next year’s minimum grain purchase and farm subsidies. Increase subsidies for low-income urban residents. Increase pension funds for enterprise employees and allowances for those receiving special services.
9. Taxes: Extend reforms in value-added tax rules to all industries. Encourage technological upgrading.
10. Finance: Enhance financial support to maintain economic growth. Remove loan quotas on commercial lenders. Appropriately increase bank credit for priority projects, rural areas, smaller enterprises, technical innovation and industrial rationalization through mergers and acquisitions.
The moves are expected to have positive effects on cement, iron and steel producers.
Commercial lenders will benefit as loan ceilings are abolished.
Medium-sized and small companies are likely to benefit from preferential policies.
And the Chinese economy will continue to hum.
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