China Accelerates Major Project Construction to Boost Investment and Economic Growth

Beijing, May 24 – This year, significant construction projects across various regions in China have accelerated, spanning from transportation infrastructure to industrial upgrades, energy development, and public welfare initiatives. These projects not only inject substantial momentum into investment expansion but also serve as vivid illustrations of China’s robust economic growth.

In the field of transportation construction, major milestones have been achieved. The Yichang to Xingshan high-speed railway’s Honglianhe Grand Bridge in Hubei province has successfully completed its main span. Additionally, the Wenchang Tunnel of the Guangzhou to Zhanjiang high-speed railway has been smoothly connected, and the steel structure of the Tianfu Station on the Chengdu to Yibin high-speed railway has been fully completed. These developments highlight the impressive capabilities of China’s high-speed rail construction.

As May progresses, transportation projects continue to gain momentum. The main bridge of the Heishanxia Yellow River Grand Bridge on National Highway 338, from Zhongwei to Mengjiawan, is expected to achieve its main span completion this month. Furthermore, the Wuma Expressway’s Huinong to Shizuishan segment is nearing completion and is expected to pass inspection by August, paving the way for accelerated regional economic development.

There are also numerous highlights in industrial project construction. In the chemical industry, the Rongxin Chemical 800,000-ton olefin project in Dalat Qi, Inner Mongolia, is progressing rapidly. Once operational, it is anticipated to generate an annual output value of approximately 6.7 billion yuan (RMB), significantly promoting the local chemical industry towards high-end and sustainable development.

In the renewable energy sector, the Sichuan Aba Hongyuan Yake Photovoltaic Power Station, the first grid-connected energy storage station in Sichuan province, has achieved full capacity operation. It is expected to generate 450 million kilowatt-hours of electricity annually, providing new impetus for optimizing the local energy structure and promoting green development.

Since last year, China has accelerated the implementation of major strategic initiatives and safety capacity building in key sectors, laying a solid foundation for development with substantial “hard investments.” According to the National Development and Reform Commission (NDRC), 700 billion yuan in long-term special bonds have been allocated for major projects in 2024, with nearly 500 billion yuan arranged for 2025. These funds support critical projects such as traffic infrastructure along the Yangtze River, urbanization of agricultural migrants, high-standard farmland construction, urban underground pipelines, and the “Three Norths” project. Li Chao, Deputy Director of the NDRC Policy Research Office, stated that a large number of these projects will play a crucial role in stabilizing economic operations and optimizing industrial structures.

As the progress of major project construction continues, the growth in investment is consistently updating its performance records. The latest data from the National Bureau of Statistics shows that fixed asset investment grew by 4.0% year-on-year from January to April. Driven by the “two major” constructions, the effect of infrastructure investment has significantly strengthened, achieving a year-on-year increase of 5.8%, which is 1.8 percentage points higher than the overall investment growth rate. Jiang Fei, a macroeconomist at Great Wall Securities, predicts that infrastructure investment growth is likely to accelerate further in the second quarter.

Notably, private investment has emerged as a new highlight in expanding investment. In the first four months of this year, private investment grew by 0.2% year-on-year, with private project investment, excluding real estate development, rising by 5.8%. Luo Yifei, Chief Statistician of the Investment Department of the National Bureau of Statistics, indicated that the steady growth of private project investment is attributed to the implementation of various measures to promote the development of the private economy. This year, China has actively guided private enterprises to participate in major national projects by easing market access and strengthening financing support. In sectors such as nuclear power, several projects involving private capital have successfully launched, demonstrating the national commitment to supporting private enterprises in major project construction and fostering their growth. With the implementation of the Private Economy Promotion Law, private investment confidence is expected to be further boosted.

Analysts suggest that as numerous ongoing major projects continue to advance and private and government investments progress in synergy, the multiplier effect on China’s economy is likely to be further unleashed, continuously providing impetus for high-quality and stable economic development.