Tianjin, in northern China, released a four-year investment plan on Tuesday that calls for spending 1.5 trillion yuan ($236 billion) on 10 industries, said a report on the municipal government website.
“In the next few years, Tianjin will concentrate on the development of petrochemicals, port equipment and the aerospace industry as it tries to make them stronger global competitors,” the government’s report said.
Besides that, priorities are being placed on the biotechnology, “green” food and new-materials industries, according to the report.
Tianjin’s release of its stimulus plan comes a day after Chongqing announced a similar policy. Chongqing, for its part, proposes to put 1.5 trillion yuan over three years into seven strategic industries, including electronics and IT, automobiles, energy and advanced equipment, Xinhua News Agency reported. As much as 300 billion yuan is to go into electronics and as much as 200 billion yuan into automobiles. Zhang Dejiang, vice-premier and Party secretary of Chongqing, said at a conference on Monday that the municipality will place a priority on the development of the industrial sector
Besides Tianjin and Chongqing, Ningbo in Zhejiang province, Nanjing in Jiangsu province, Guangzhou in Guangdong province and Changsha in Hunan province have all announced stimulus plans that are aimed at encouraging investment and promoting growth.
“We continue to expect these city-level initiatives to help the economy rebound in the second half of this year,” said Zhang Zhiwei, the chief economist in China with Nomura Securities Co Ltd.
Liu Ligang, head of China economics studies at the Australia and New Zealand Banking Group Ltd, said China’s economy is faced with risks that are more serious than expected, adding that further monetary policy easing and fiscal stimulus can support a rebound.