China has recently announced a strategic list of investment projects worth 200 billion yuan (approximately 28 billion USD) as part of its 2025 economic development plan. This proactive initiative, led by the National Development and Reform Commission (NDRC), demonstrates the government's strong commitment to boosting economic growth and infrastructure development. The 647 projects span a broad range of sectors, including urban underground networks, disaster relief through employment, reservoir fortification, ecological restoration, transportation infrastructure, and public services such as healthcare, education, and cultural facilities. Notably, the plan also prioritizes key agricultural storage infrastructure to safeguard food security.

This early release of project details is part of a broader strategy to expedite the start of construction, ensuring that significant progress is made within this fiscal year. The NDRC has emphasized that these projects will provide substantial support for China's economic growth in the fourth quarter of 2024. This approach comes at a time when China's GDP has already grown by 4.8% in the first three quarters, showcasing the economy's resilience amidst global challenges.

Strategic Focus on “Two Priorities”

The investment projects are part of China's broader focus on what the government calls the “Two Priorities” strategy, which encompasses infrastructure development and institutional reforms. The NDRC has outlined plans to continue supporting these areas through the issuance of ultra-long-term special treasury bonds, with allocations targeted towards key national development initiatives. These bonds are expected to provide the financial muscle needed to ensure the successful implementation of the projects, which range from traditional infrastructure to “soft” policy innovations.

To further accelerate progress, the NDRC will allocate 1 trillion yuan towards these key initiatives, evenly divided between major construction projects and central budgetary investments. These investments, carefully selected in coordination with local and central authorities, are already well-prepared to begin implementation and are expected to yield tangible economic benefits in the near term.

Solid Economic Foundation

China's economic performance in 2024 has laid a solid foundation for achieving its annual growth target of around 5%. According to official data, China's GDP grew by 4.8% in the first three quarters of the year. This growth, though modest by historical standards, is a reflection of the country's ability to navigate global economic uncertainty and internal structural adjustments.

Sheng Laiyun, Deputy Director of the National Bureau of Statistics, highlighted three key factors driving China's economic performance. First, the overall stability of the economy has been maintained despite fluctuations in the second and third quarters. Second, China's high-quality development strategy has continued to advance, ensuring long-term sustainability. Third, there have been noticeable improvements in key economic indicators, particularly in September, when many sectors showed marginal improvements, indicating a stabilizing economy.

Sheng further emphasized that policy measures introduced in 2024 have had a notable impact on driving economic growth. These measures have helped unlock domestic demand potential, support industrial production, and improve market confidence. As a result, China is well-positioned to meet its full-year economic goals, with positive momentum expected to carry through to the end of 2024.

Policy Measures and Market Confidence

The release of these investment projects comes on the heels of several key policy initiatives, which have been designed to further stimulate China's economic recovery. Following a meeting of the Central Committee, new fiscal and monetary measures were introduced to enhance market confidence and promote economic growth. These measures include increased government spending, enhanced financial support for key sectors, and initiatives aimed at boosting consumer confidence.

One of the central elements of China's economic strategy for 2025 is the focus on balancing "hard" investments in infrastructure with "soft" innovations in policy and regulatory frameworks. The NDRC's plan to advance key infrastructure projects in tandem with institutional reforms is intended to ensure that China's economic recovery is both robust and sustainable.

Looking ahead, Sheng Laiyun remains optimistic about China's economic outlook for the remainder of the year. He pointed to high-frequency indicators, such as electricity consumption and key production metrics, as evidence that the economy is on track for continued growth in the fourth quarter. Furthermore, consumer activity during the "Golden Week" holiday in October has bolstered confidence in China's ability to achieve its 5% growth target by year-end.

Optimism for the Future

While the global economic environment remains challenging, China's proactive policy measures and strategic investments have positioned the country for a strong recovery. The combination of early project planning, financial support through special treasury bonds, and a clear focus on infrastructure development suggests that China is well-prepared to navigate the uncertainties of the global market.

The NDRC's focus on both infrastructure and policy innovation underscores the government's long-term vision for sustainable economic growth. By addressing key weaknesses in the economy—such as infrastructure deficits and outdated regulatory frameworks—China is laying the groundwork for continued progress, both domestically and on the global stage.

As Sheng Laiyun noted, China's economic resilience in 2024 has demonstrated the country's capacity to adapt to a rapidly changing global landscape. With strong policy support and a clear focus on key development goals, the country's investment strategy for 2025 is set to provide significant benefits, not only in terms of economic performance but also in enhancing China's role as a global economic leader.