China is accelerating implementation of major projects with focus on high-tech manufacturing, "new infrastructure" and new urbanization initiatives, which will help stabilize investments and create jobs, playing a key role in promoting the steady recovery of domestic demand, experts said on Tuesday.
This should help expand effective investment and foster high-quality development across the country, they said.
"New infrastructure" refers to physical installations like equipment, machinery and facilities as well as technologies relating to 5G telecom, big data, artificial intelligence, electric vehicles, autonomous driving, industrial internet and similar cutting-edge advances.
Zhou Maohua, an analyst at China Everbright Bank's financial market department, said implementation of key projects across the nation augurs well for consolidating the economic recovery from the COVID-19 pandemic effects.
As of June 29, 100 major projects have been launched in Beijing, with a total investment of 83.9 billion yuan ($13 billion), according to the Beijing Municipal Commission of Development and Reform.
The commission said in a statement published on its official website that the city's fixed-asset investment increased by 12.9 percent year-on-year during the January-May period.
In particular, the investment to shore up weak links and consolidate strong links in industrial and supply chains surged significantly during the first five months of this year.
For instance, investments in high-tech manufacturing and business services jumped 35.1 percent and 48 percent year-on-year, respectively.
At the end of May, the city of Xi'an, capital of Shaanxi province, held a commencement ceremony for 83 key projects for the second quarter entailing a total investment of 79.5 billion yuan, among which 24 are advanced manufacturing projects.
"The rapid growth of investment in high-end manufacturing has shown local governments' greater emphasis on investment efficiency," Zhou said.
Considering the need for investment in three major areas－real estate, infrastructure and manufacturing－Zhou expected domestic investment will grow steadily in the second half of this year.
"With the steady recovery of the domestic economy, the government's regulation on the housing market and the steady development of urbanization, the real estate market will not experience a rollercoaster period in the second half," Zhou said.
"As various regions have accelerated the push for implementing major projects, the investment on infrastructure is set to remain stable. And the investments on manufacturing are set to benefit from the government's effective measures to prevent and control the COVID-19 pandemic, the steady recovery of domestic and overseas demand, the government's supportive policies and the overall improvement in corporate profits."
Ning Jizhe, deputy head of the National Development and Reform Commission, the country's top economic regulator, told a news conference that the country is set to issue the new infrastructure construction plan for the 14th Five-Year Plan period (2021-25) this year, to accelerate the construction of new types of infrastructure.
Zhou from China Everbright Bank's financial market department said the construction of new infrastructure, new urbanization initiatives and major projects are conducive to balancing the short- and medium-to-long-term economic development goals.
"For the short term, it will help stabilize investment, create jobs and cushion the coronavirus impact. In the medium to long term, it will stress the weak links, meet the need for consumption upgrade, promote industrial restructuring and upgrading, enhance regional competitiveness, promote high-quality development and improve investment efficiency," Zhou said.