CRI听力：Experts: China's Massive Stimulus Package to Stabilize Economic Growth

China has released an economic stimulus package of $570 billion US dollars to boost domestic demand while the tightened monetary policy imposed earlier this year has been eased.

Economists say that the massive stimulus package will help stabilize economic growth, and push forward the shift of export-oriented markets in the wake of global financial crisis. CRI Reporter Chen Xi has the details.

Reporter:
China's State Council, or the cabinet, has approved a package of capital spending plus income and consumption support measures.(WWw.hxen.net)

According to the amount allocated, four trillion Yuan, or some $570 billion US dollars, will be used on upgrading infrastructure, particularly roads, railways, airports and the power grid. It will also be used to raise rural incomes through land reform and used on social welfare projects such as affordable housing and environmental protection.

Wang Songqi, deputy-director of the 'Institute of Finance & Banking' with the 'Chinese Academy of Social Sciences', gave his views about the package.

"I think this investment has huge implications, which will boost credit capital markets, including the money raised by the local governments at various levels. The eventual impact will be multi layered."

The package also includes some other aspects, such as construction projects of gas pipes, nuclear power plants, dams and also disaster reconstruction spending from last winter's natural disasters.

Wang Yiming, a high-ranking official with the National Development and Reform Commission, says the Chinese economy will obviously benefit from the wide range of proposed infrastructure construction.

"The storage volume of steel in China is increasing, the situation is the same for cement, which, I think, will trigger the related industries and boost the employment markets as well. This will also improve people's income and their social welfare."

The new economic policies include a comprehensive reform in value-added taxes as well, which would cut industry costs by 120 billion Yuan.

China also indicated a shift to a "moderately easy" monetary policy, after three interest rate cuts since mid-September.

Su Ning, vice governor of the People's Bank of China, the central bank, explained that the new monetary policy will focus on more loans for high-quality projects.

"We will increase loans to key industries in expanding domestic demand. Besides the 570 billion US dollars investment, we encourage commercial banks to enlarge their participation in this process. Meanwhile, more supportive policies will be extended to mid and small-sized enterprises, initiatives in energy-saving and emission controls".

Chen Xi, CRI News