China Accelerates Major Project Development to Boost Investment and Economic Growth

Economic Observation: Major Projects Accelerate in China, Providing Strong Investment Momentum

Beijing, May 24 (Reporter Liu Wenwen) – Since the beginning of this year, the construction of major projects across various regions in China has been rapidly advancing. From transportation infrastructure and industrial upgrades to energy development and public welfare projects, these initiatives not only inject significant momentum into expanding investments but also vividly illustrate the robust growth of the Chinese economy.

In the field of transportation construction, significant milestones have been achieved. The Yichang-Xingshan High-Speed Railway’s Kalan River Bridge in Hubei Province has successfully completed its connection, while the Wenchang Tunnel of the Guangzhou-Zhanjiang High-Speed Railway has been successfully linked. Additionally, the steel structure of the Tianfu Station on the Chengdu-Yibin High-Speed Railway has been fully completed. These developments showcase the strong capabilities of China’s high-speed rail construction.

As May progresses, transportation construction continues to gain momentum. The Heishan Gorge Yellow River Bridge along National Highway 338 is expected to achieve main bridge completion this month. The Huinong to Shizuishan section of the Wuma Expressway is nearing completion and is set for acceptance testing, with expectations of opening to traffic in August, thereby paving a “fast track” for regional economic development.

There are also many highlights in industrial project construction. In the chemical industry, the Rongxin Chemical’s annual production of 800,000 tons of olefins project in Inner Mongolia’s Dalat Banner is progressing well. Once operational, it is expected to generate an additional annual output value of nearly 6.7 billion yuan (RMB), significantly promoting the local chemical industry’s transition to higher-end, greener production.

In the renewable energy sector, Sichuan Province’s first grid-connected energy storage station—the Aba Hongyuan Yake Photovoltaic Power Station—has commenced full-capacity operations, projecting an annual generation of 450 million kilowatt-hours, which will further enhance the optimization of the local energy structure and support green development.

Since last year, China has accelerated the implementation of major construction projects under the “Two Major” initiatives (the implementation of national major strategies and the construction of security capabilities in key fields) to ensure high-quality development through substantial “hard investments.” According to data from the National Development and Reform Commission (NDRC), the country has allocated over 700 billion yuan for long-term special bonds in 2024 and nearly 500 billion yuan for 2025 to support the construction of significant projects, including traffic infrastructure along the Yangtze River, urbanization of agricultural migrant populations, high-standard farmland construction, urban underground pipelines, and the “Three North” project. Li Chao, deputy director of the NDRC’s Policy Research Office, stated that a substantial number of “Two Major” projects that have commenced will play a key role in stabilizing economic operations and optimizing industrial structures.

With the construction progress of major projects continuously advancing, the investment growth “report card” is consistently improving. The latest data from the National Bureau of Statistics shows that from January to April, fixed asset investment increased by 4.0% year-on-year. Notably, under the impetus of the “Two Major” initiatives, the impact of infrastructure investment has significantly strengthened, with a year-on-year increase of 5.8%, which is 1.8 percentage points higher than the overall investment growth rate. Jiang Fei, a macroeconomic analyst at Great Wall Securities, predicts that infrastructure investment growth is likely to accelerate further in the second quarter. The influence of large project investments is particularly evident; from January to April, investment in projects with a total planned investment of 100 million yuan and above grew by 6.7% year-on-year, surpassing the overall investment growth rate by 2.7 percentage points and contributing to a 3.8% increase in total investment.

It is noteworthy that private investment has emerged as a new highlight in expanding investments. Data shows that in the first four months of this year, private investment increased by 0.2% year-on-year, with private project investments, excluding real estate development, rising by 5.8%. Luo Yifei, chief statistician at the Investment Division of the National Bureau of Statistics, emphasized that the overall stable growth of private project investments is aided by a series of measures promoting the development of the private economy. This year, China has actively guided private enterprises to participate in national major project construction through pragmatic measures such as relaxing market access and strengthening financing support. In fields such as nuclear power, several projects with private capital participation have successfully launched, demonstrating the government’s commitment to supporting private enterprises in national major project construction and fostering their growth. Looking ahead, with the implementation of the Private Economy Promotion Law, private investment confidence is expected to be further bolstered.

Analysts believe that with numerous ongoing major projects progressing, and with private and government investments advancing in synergy, the “multiplier effect” of China’s economy is expected to be further unleashed, continuously injecting momentum into high-quality and stable economic development.