China reports second-quarter GDP miss, another record high in youth unemployment
NBCJul 08, 2023
The Facts
The Chinese government has announced an intent to attract more private capital for major infrastructure projects. The National Development and Reform Commission said on Monday that it will encourage investors in the transportation, water, energy, and agricultural sectors.
The Commission released a list on Monday of 2.9K local government projects worth 3.2T yuan ($591B) that private investors can participate in. This step is intended to improve business sentiment and boost faltering economic growth.
The Spin
Pro-China narrative
Beijing has recognized the importance of private businesses in order for China to boost its economic recovery after two years of slow growth and COVID lockdowns. Private enterprises generate half of all tax revenue and over 60% of GDP. This is a strong message from the Commission.
Anti-China narrative
The world's second-largest economy has suffered from a confidence problem after two years of crackdowns and pandemic controls. Foreign investors want the same level of access that Chinese companies enjoy in Western markets. Private entrepreneurs in China are waiting for the government to provide more than just rhetoric regarding market access. For now, the PRC's private sector push is running into skepticism.
