China Unveils Massive $586B Stimulus Bill

Beijing focuses on boosting infrastructure, social welfare

By Newser Editors and Wire Services

Posted Nov 9, 2008 10:56 AM CST

(Newser) – China announced a $586 billion stimulus package today in its biggest move to stop the global financial crisis from hitting the world's fourth-largest economy. A statement on the government's website said China's Cabinet had approved a plan to invest the money in infrastructure and social welfare by the end of 2010.

Spending will focus on 10 areas, including increased spending on low-cost housing and rural infrastructure. Money will also be poured into new railways, roads, airports, health, education, environmental protection, and high technology. The government has already cut key interest rates three times in less than 2 months in a bid to spur economic expansion.

China's Communist Party met to discuss agricultural reforms as the global economic crisis buffets the country.   (AP Photo)
China's Central Bank Governor Zhou Xiaochuan noted that "our economy is highly reliant on overseas demand" and warned that weaker exports resulting from global slowdown would have a negative impact.   (AP Photo/ Elizabeth Dalziel)
A woman buys fruits at a market in Beijing, China, Monday, Nov. 3, 2008. Economic growth slowed to 9 percent in the third quarter, its lowest level in five years and a sharp decline from last year.   (AP Photo/Andy Wong)
Chinese investors chats while waiting for Monday share numbers in a stock trading office in Beijing, China, Monday, Oct. 27, 2008.   (AP Photo/Alexander F. Yuan)
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