China rules out large fiscal investments to boost economy

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Updated Mon, 12 Jan 2015 14:00:55 GMT

China will not inject large amount of newly added fiscal investment to stimulus the economy in 2015, a senior official of the National Development and Reform Commission said on Thursday.

China has yet to have a specific number for the total investment in infrastructure projects in 2015, Luo Guosan, deputy director general of the investment department of the NDRC, told a press conference on Thursday.

Bloomberg reported on Tuesday that China is accelerating 300 infrastructure projects valued at 7 trillion yuan ($1.1 trillion) this year as policy makers seek to boost growth that’s in danger of slipping below 7 percent.

The NDRC said in December the nation will boost investment in seven major sectors, including oil and gas pipelines, health, clean energy, transportation and mining.

Luo said the seven major sectors have clearly indicated China’s direction for future investment but it’s difficult to give a number for this year’s investment.

Constructions of some projects have started, while some have just started preliminary work and it is hard to calculate the total investment, said Luo.

“It is quite different to the 4 trillion yuan stimulus package in 2008,” said Luo.

“The critical point is, we won’t use large amount of newly added fiscal investment to stimulus economy, but instead guide social capitals participation in investment, that’s a very important policy direction,” said Luo.