China is really determined to keep its economy on a growth path. Its State Council has announced today a $292 billion investment in rail infrastructure.
Increasing investment in its fixed assets has remained one of China's main strategies as it moves to maintain its growth against other failing economies. By 2010, the total length of China's railway will reach 90,000 km, according to its Ministry of Railways. It is politically imperative for the Chinese Government to keep employment up as factory production declines.And it will do so.This announcement along with rural reforms and property market re-structure indicates that China will use all available resources to keep it ahead of the West.
Major railway projects will be started almost immediately.In 1997 they kept things on the boil by building all those freeways and roads...now the rail system! Keep watching the China phenomenon.