State Stimulus Expected To Accelerate China 's Growth by 2H 2009

STRONG policy and fiscal measures are expected to trigger an upward growth in the Chinese economy by the second half of this year.

The decision to spend an estimated US$585 billion on public projects over the next two years constitutes one of the most significant steps by the central government to maintain the momentum of the domestic economy.

Massive public spending is expected to generate a strong domestic demand for goods, which in turn will offset the negative impact of an export slowdown.

Through the package, the government will extend agricultural, electricity and other subsidies to the countryside to promote rural welfare and encourage consumption in non-urban areas.