Opinion: China Announces $586 Billion Stimulus Plan

November 10, 2008 by Opinion

China unveiled its $586 billion economic stimulus package Sunday intended to help its weakening economy and maybe help fight the global slowdown.According to the New York Times, despite most countries around the world tightening their belts, China plans to spend the estimated $586 billion by 2010 on national infrastructure and social welfare projects, including constructing new railways, subways, airports and rebuilding communities devastated by the earthquake that hit in May.Over the past two months, the global financial crisis has been intensifying daily, the State Council said in its statement, reported the New York Times. In expanding investment, we must be fast and heavy-handed.This week Chinas president, Hu Jintao, will travel to the U.S. along with other world leaders to attend the global economic summit meeting hosted by President Bush. Because China has the worlds fastest growing economy, world leaders are expected to pressure china to do its part, reported the New York Times.According to Chinas state-run media, President Hu spoke with President-elect Obama on the phone Saturday and discussed many issues, including the global financial crisis and how the two countries might cooperate to help resolve economic problems, reported the New York Times.With its economy weakening after five years of growth, China is acting aggressively, reported the New York Times. Arthur Kroeber, managing director at Dragonomics, a Beijing-based economic research firm, said the government is worried because the Chinese people are pulling back on spending due to worries about the economy.The government is sending a signal saying: Were going to spend in a big way, Kroeber said to the New York Times late Sunday in a telephone interview. This is designed to say to the market that people should not panic.

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