Friday, November 14, 2008

$585 Billion to stimulate the Chinese economy

China has announced a $585 billion economic stimulus plan to help it counteract the worldwide financial crisis. Innovating through crisis is critical, and precisely what China intends to do with this spending. The country is already feeling an impact on its export as the reality of the economic recession hits more countries, and they want to stop before it gets worse.

China’s plan is to invest the nearly $600 billion economic stimulus plan over the next two years on social welfare, such as low income housing and rural infrastructure to fend off financial crisis. Post-Sichuan earthquake reconstruction is a major part of that investment, as is public transit, health care, education and the environment.

Its going to be interesting to see how the stimulus package is going to keep China growing and maintain at least an 8 percent growth for the next 3 years. China is surely is a good position to weather the current global financial storm of the century.

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