China announces economic stiulus package.
China unveiled a $586 billion stimulus package to help prevent the lagging global economy from affecting the nation, Trend Capital reported Sunday.
China, the world’s fourth largest economy, announced a plan to invest 4 trillion yuan into infrastructure and social welfare by the end of the year 2010. Some of the funds for the plan will be derived from the private sector while the Chinese government will provide the other necessary funds. The statement made by Chinese officials also did not clarify whether the money would be used to fund new projects or speed up already existing ones.
CNN reported that China’s economy, which is predicated upon global exports, is already feeling the effect of economic woes in the U.S. and Europe. The government has cut interest rates three times in the last two months in the hopes of fueling economic growth. Economic growth in the nation was at 9 percent during the third quarter, which marked the lowest level of economic growth there in 5 years.