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China announces economic stimulus plan

China proposed a $586 billion economic stimulus package on Sunday in an attempt to revive some of the economic slowdown.

China’s Cabinet approved a plan to invest in national infrastructure and social welfare by the end of 2010.

The New York Times reports that some of the money will go to constructing new railways, subways, airports and rebuilding communities devastated by an earthquake in southwest China in the spring of 2008.

CNN reports that beyond that, the money will be spent on health and education as well as low-cost housing.

The proposal was announced before President Hu Jintao’s trip to Washington for a global economy summit.

The New York Times reports that Hu Jinato spoke with President-elect Barack Obama over the phone on a range of issues, including the economy.

China plans to help stabilize the global economy by looking inward and keeping one of the largest economies on track.

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