Scott
11-10-2008, 03:42 AM
BEIJING — China unveiled a $586 billion stimulus package Sunday in its biggest move to inoculate the world's fourth-largest economy against the global financial crisis.
Chinese and Japanese stocks soared Monday in early trading after the government's announcement. The Cabinet approved the plan to invest money in infrastructure and social welfare by the end of 2010, a statement on the government's Web site said.
Some of the money will come from the private sector. The statement did not say how much of the spending is on new projects and how much is for ventures already in the pipeline that will be speeded up.
China's export-driven economy is starting to feel the pinch of weakening U.S. and European economies, and the government has already cut key interest rates three times in less than two months in a bid to spur economic expansion.
Economic growth slowed to 9 percent in the third quarter, the lowest level in five years and a sharp decline from last year's 11.9 percent.
That is considered dangerously slow for a government that needs to create jobs for millions of new workers who enter the economy every year and to satisfy a public that has come to expect steadily rising incomes.
Link (http://www.foxnews.com/story/0,2933,449244,00.html)
China must really be feeling the heat if they have to do stimulus.
Chinese and Japanese stocks soared Monday in early trading after the government's announcement. The Cabinet approved the plan to invest money in infrastructure and social welfare by the end of 2010, a statement on the government's Web site said.
Some of the money will come from the private sector. The statement did not say how much of the spending is on new projects and how much is for ventures already in the pipeline that will be speeded up.
China's export-driven economy is starting to feel the pinch of weakening U.S. and European economies, and the government has already cut key interest rates three times in less than two months in a bid to spur economic expansion.
Economic growth slowed to 9 percent in the third quarter, the lowest level in five years and a sharp decline from last year's 11.9 percent.
That is considered dangerously slow for a government that needs to create jobs for millions of new workers who enter the economy every year and to satisfy a public that has come to expect steadily rising incomes.
Link (http://www.foxnews.com/story/0,2933,449244,00.html)
China must really be feeling the heat if they have to do stimulus.