AP) BEIJING – A major Chinese city has announced plans for $240 billion in industrial investments, adding to local spending initiatives that analysts say should help to reverse China’s economic slowdown.
The government of Chongqing, a major industrial center in China’s southwest, said in an announcement reported Tuesday by state newspapers that it will invest 1.5 trillion yuan in seven areas including autos, electronics and petrochemicals over the next three years.
It is the fifth Chinese city to announce multibillion-dollar investment plans as they try to stimulate economic growth that has slowed steadily this year. The others are Changsha in central China, Guangzhou in the south and Nanjing and Ningbo in the east.
Those city-level initiatives should help to drive an economic rebound before the end of the year, Nomura economist Zhiwei Zhang said in a report Tuesday.
China’s economic growth slowed to a three-year low of 7.6 percent in the quarter ending in June despite government stimulus efforts. The International Monetary Fund is forecasting 8 percent growth for the year but revenues for some companies in industries such as shipbuilding are down 50 percent.
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