China Confirms $1.7 Trillion Spending Plan

Reuters reports confirmation of plans to inject $1.7 trillion dollars into key strategic sectors of China’s economy over the next five years.

The confirmation of the huge sum of money showed Beijing’s ambition to shift the growth engine of the world’s No.2 economy to cleaner and hi-tech sectors while also boosting domestic growth as the global economy struggles ….

According to Beijing, the targeted sectors include alternative energy, biotechnology, new-generation information technology, high-end equipment manufacturing, advanced materials, alternative-fuel cars and energy-saving and environmentally friendly technologies.

To fulfill the spending target, the central Chinese government itself would most likely not deliver the bulk of the money, but would seek to spur spending by corporations, investment by local governments and lending by banks.

China’s investment in science and technology has tended to yield mixed or questionable returns, however: see, via CDT, a three-part NPR series on the country’s quest to become a scientific superpower.