The government has stated that in 2015 it will maintain the same pace of transportation infrastructure construction that it began in 2014 to counterbalance the growth of the Asian powerhouse, whose GDP grew by 7.4 % last year—the lowest level in 24 years.
This was stated by the country’s National Development and Reform Commission (NDRC), which emphasized that more railway lines, especially in the poorer central and western regions of China, will be launched to stabilize the economy and improve the population’s standard of living, according to today’s edition of the official People’s Daily.
In 2014, the NDRC approved a budget of 34 billion yuan ($5.56 billion) for transportation infrastructure, which included railways, highways, airports, and canals.
By the end of last year, China had more than 110,000 kilometers of railroad tracks, 15,800 of which were high-speed lines, making it the world leader in this area.
Abroad, Beijing has also shown a particular interest in recent years in investing in infrastructure development, particularly in transportation and what it calls the «New Silk Road.».
China announced last week that it will contribute $40 billion to a fund to finance this project, which President Xi Jinping dubbed the «New Silk Road» in 2013 and which consists of two initiatives—one maritime and one land-based.
By building highways, telecommunications networks, railroads, and ports, it aims to reestablish Beijing as a hub for continental trade and strengthen its economic ties with Africa and Europe.
Furthermore, China is seeking to build a middle class in the country through an urbanization and infrastructure development project that will help boost domestic demand, thereby reducing its reliance on investment and balancing its growth, which is becoming less robust.
