Published on :
In Shanghai, the authorities have launched eight infrastructure investment projects for a colossal amount of 257 billion dollars. The aim is to boost the economy of this city, the most populous in China.
According to the Shanghai authorities, these projects relate to the development of urban transport, railways, renewable energies and even drinking water infrastructures.
By launching these massive investments, the Chinese authorities want to stimulate the growth of the city, the economic heart of the country. It has indeed suffered from the confinements linked to Covid-19, in the months of April and May.
Result: the economy collapsed 13.9% in the second quarter, the largest contraction of any region in China. The shutdown of the city not only penalized industrial activity, but also limited consumption and disrupted supply chains. Added to this are the effects of the slowdown in the real estate sector which is affecting the whole country.
Shanghai, an international financial center, is vital for the Chinese economy. Its GDP exceeds that of Belgium and its port is the first in the world in terms of volumes of goods. Hence the expression: when Shanghai coughs, China catches a cold.
►Read also: China: the Central Bank cuts interest rates again to support the economy