China will increase the scale and intensity of major transportation infrastructure construction this year to act as stimulus to spur growth of the economy which continued to decelerate.
China’s National Development and Reform Commission (NDRC) said that more railway lines, particularly in the central and western regions, will be put into operation this year, which will in turn stabilise economic growth and improve people’s livelihoods.
The NDRC will continue to encourage social capital through preferential measures to attract investment in major transportation infrastructure in 2015, state-run Xinhua news agency reported.
China officially denies resorting to any major stimulus to fire the economy but it continued heavy investments in transport infrastructure to maintain growth momentum.
In 2014, the NDRC approved 34 billion yuan (USD 5.56 billion) for transportation infrastructure, which included railways, roads, airports and waterways.
China had more than 110,000 kilometers of railways by the end of 2014, 15,800 kms were high speed rail (HSR).
China’s economy grew at 7.4 per cent last year, a 24 year low with prediction by IMF that it was expected to decline to 6.8 this year and 6.3 next year.