CHINA-ECONOMY: EXECUTIVE VICE PREMIER HAN ZHENG CHAIRS MEETING ON STABILISING INVESTMENT
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Xinhua reported (March 27) that China’s Executive Vice Premier Han Zheng chaired a meeting on March 26 in Beijing on stabilising investment. Han Zheng is reported to have said "financial support such as local special bonds should prioritise key areas and major projects.” He also said "the construction of "new infrastructure" projects such as 5G networks should be strongly encouraged to ramp up new business modes such as the digital economy.” Cautioning that “[We] must persist with the principle of “capital follows the projects” he said viable projects should be identified, and only then will capital be allocated. The government has already allocated over RMB 2 trillion to combat the slowdown. Reuters quoted a Foreign Ministry official saying on March 26 that “China is implementing $344 billion of mainly fiscal measures in its fight against the coronavirus outbreak." Wang Xiaolong, Director General of International Economic Affairs at the Ministry of Foreign Affairs said " The money already spent includes 1 trillion yuan ($141 billion) in tax reductions, as well as liquidity released through targeted tools".
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