China reveals new measures to boost economic growth

New measures designed to boost the Chinese economy have been announced, including a wide range of ambitious infrastructure projects.

Along the Yangtze River, which links the city of Shanghai to the less developed inland regions of China, the government is set to build new airports, roads and railways.

China has been taking various steps in the last few weeks to boost economic growth in the Asian nation amid fears the country could be heading for a slowdown in the coming months.

The nation's economy grew by 7.4 per cent in the first quarter of the year, which was down from the figure of 7.7 per cent recorded by the Chinese economy between January and March 2013.

In a statement released yesterday, the State Council said that the decision to build a multi-tier transport system alongside the Yangtze River is set to create a new economic belt along the river. According to the state-owned Xinhua news agency, the body said: "Better use of the so-called 'golden waterway' can boost economic integration between developed and impoverished regions and inject fresh energy into China's economic growth."

Bank lending

China's central bank also revealed that it is going to encourage banks to lend more money to companies, as this should boost exports and in turn be good news for the country's economy.

It is only a few days since the China Banking Regulatory Commission (CBRC) promised to tighten supervision over the shadow banking sector in the country. It said loans will be increased and borrowing costs are to be capped in a move the organisation says will boost the supply of funds to the real economy.

CBRC's vice-president Wang Zhaoxing told a news conference that ways to manage deposit-to-loan ratios are going to be improved by the body as well.

Other infrastructure projects announced by the Chinese government include improvements to the navigation capacity of the Three Gorges Dam, while standardised ships are going to be adapted for the Yangtze as this will encourage the development of energy-saving vessels.

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