China Accelerates Major Project Development to Boost Investment Momentum

Economic Observation: Major Projects Accelerate Progress, China Boosts Investment Momentum

As of May 24, 2025, significant construction projects across various regions in China have been rapidly advancing this year. From transportation infrastructure to industrial upgrades, energy development, and livelihood projects, these initiatives are not only injecting robust momentum into investment expansion but also exemplifying the vigorous development of the Chinese economy.

In the transportation sector, major milestones have been achieved, including the successful completion of the Yichang to Xingshan High-Speed Railway’s Gaolan River Bridge in Hubei Province, the successful tunneling of the Wenchang Tunnel on the Guangzhou to Zhanjiang High-Speed Railway, and the full completion of the steel structure for the Tianfu Station on the Chengdu to Yibin High-Speed Railway. These achievements highlight China’s formidable capabilities in high-speed rail construction. As May progresses, transportation projects continue to gain momentum; the main bridge of the Heishanxia Yellow River Bridge on National Route 338 is expected to be completed this month, while the reconstruction and acceptance inspection of the Huinong to Shizuishan section of the Wuma Expressway is nearing completion, with plans to open to traffic in August, paving the way for regional economic development.

In terms of industrial project construction, there are numerous highlights. In the chemical industry, the Rongxin Chemical’s annual production of 800,000 tons of olefins project in Inner Mongolia’s Dalat Banner is making significant progress. 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 towards higher-end and greener development. In the renewable energy sector, Sichuan Province’s first grid-connected energy storage power station, the Aba Hongyuan Yake Photovoltaic Power Station, has achieved full-capacity grid connection, with an expected annual power generation of 450 million kilowatt-hours, providing new momentum for local energy structure optimization and green development.

Since last year, China has been accelerating the implementation of key tasks under the “Two Heavy” construction initiative, focusing on the high-quality execution of national strategic projects and enhancing safety capabilities in key areas. According to data from the National Development and Reform Commission (NDRC), over 700 billion yuan in special long-term bonds have been allocated for 2024, with nearly 500 billion yuan already arranged for 2025, supporting a series of major projects such as transportation infrastructure along the Yangtze River, the urbanization of agricultural migrants, high-standard farmland construction, urban underground pipeline networks, and the “Three North” project. Li Chao, Deputy Director of the NDRC’s Policy Research Office, stated that a significant number of “Two Heavy” projects that have commenced will play a critical role in stabilizing economic operations and optimizing industrial structures.

With the continuous progress of major project construction, the investment growth records are consistently refreshed. The latest data from the National Bureau of Statistics shows that fixed asset investment increased by 4.0% year-on-year from January to April. Among these, infrastructure investment, driven by the “Two Heavy” construction initiative, has seen a significant growth effect, with a year-on-year increase of 5.8%, outpacing total investment growth by 1.8 percentage points. According to macroeconomic analyst Jiang Fei from Great Wall Securities, it is expected that infrastructure investment growth will further accelerate in the second quarter. Notably, the investment in projects with a planned total investment of 100 million yuan or more increased by 6.7% year-on-year from January to April, exceeding the overall investment growth rate by 2.7 percentage points, contributing to a 3.8 percentage point increase in total investment.

It is worth noting that private investment has emerged as a new highlight in expanding investment. Data shows that private investment grew by 0.2% year-on-year in the first four months of this year, with a 5.8% increase in private project investment when excluding real estate development. Luo Yifei, Chief Statistician of the Investment Department at the National Bureau of Statistics, emphasized that the overall stable growth of private project investment is attributed to the implementation of a series of measures to promote the development of the private economy. This year, China has actively guided private enterprises to participate in major national projects through practical measures such as easing market access and strengthening financing support. Several projects involving private capital participation, especially in nuclear power and other sectors, have successfully been established, demonstrating the government’s commitment to supporting private enterprises in national project construction and promoting their growth. With the implementation of the Private Economy Promotion Law, it is anticipated that confidence in private investment will be further boosted.

Analysts believe that with numerous ongoing major projects, the collaboration between private and government investments is set to release the “multiplier effect” of the economy, continuously injecting momentum into China’s high-quality economic development and ensuring stable and sustainable growth.