Chinese Provinces Propose $1.4 Trillion Stimulus
Joe McDonald reports for the Associated Press:
Provincial Chinese governments have proposed more than $1 trillion in spending on roads and other projects on the heels of a massive national stimulus package designed to shield China from a global slowdown, state TV reported Sunday.
The central government’s announcement of a 4 trillion yuan ($586 billion) stimulus earlier this month electrified investors and briefly boosted global markets. But as details were released, it became clear China’s plan included less new spending than initially thought. Similar concerns are already being raised about Sunday’s proposals.
The key to the national package’s success will be its ability to reassure consumers, which makes its emotional impact as important as its actual size and gives Communist leaders an incentive to embellish figures.
Also see China’s Stimulus Race Sparks Fears of Excess from the Wall Street Journal.