China to cement economic recovery with infrastructure and 5G plans
China wants to cement its economic recovery with a plan that will accelerate the construction of major infrastructure and support telecommunications operators to speed up the expansion of 5G and the country's industry in its digital transformation, official media reported.
The plans, reported in local media, were revealed in a circular issued by 12 state institutions, including the powerful National Development and Reform Commission (NDRC).
The measures are intended to consolidate China's industrial growth "amid pressure from declining demand, supply shock and weakened expectations", state news agency Xinhua reports.
The Asian giant experienced a clear slowing trend in 2021 in terms of economic growth: after significant gains in the first two quarters (+18.3% and +7.9%) thanks to the base effect, in the third and fourth quarters the pace slowed to 4.9% and 4%, respectively.
Among the initiatives announced are the expansion of the BeiDou satellite navigation system, which Beijing wants to implement on a large scale, and the construction of eight large computer hubs to channel these resources from the country's prosperous provinces to the less developed but "resource-rich" eastern parts of the country.
In addition, the NDRC banned local authorities from imposing total or partial COVID closures and quarantines that have not been decreed by the central government, in an attempt to stimulate consumption and revive the service sector, one of the hardest hit by the rigid measures to contain the coronavirus.
The order also includes a ban on preventive closures of restaurants, supermarkets, cinemas and other entertainment venues without prior investigation.
The Commission said it would avoid extremes: it would not relax prevention and control of the virus, but neither should "excessive" measures be imposed in an attempt to help the sector return to normality.
In addition, 31 measures were announced, including additional tax incentives for the food, trade, tourism, transport and civil aviation sectors.