China is to spend more than £1 trillion over the next five years on green energy, transport, advanced manufacturing, space and Military innovations....
China has confirmed that it plans to pour £1.1 trillion (10 trillion yuan) into the so-called "strategic sectors" over the coming five years, US Commerce Secretary John Bryson told said during a visit to Chengdu, China.
The confirmation of the huge sum of money showed Beijing's ambition to shift the growth engine of the world's second largest economy to cleaner and hi-tech sectors while also boosting domestic growth as the global economy struggles.
The package - equivalent to the entire GDP of Italy - is two and a half times the size of the four trillion yuan fiscal stimulus launched during the global financial crisis in 2008.
There were also concerns that China would scale back some investment plans, notably the manufacturing of hi-speed railway equipment, after a deadly train crash.
But Mr Bryson said the Chinese officials in Chengdu have not scaled back their ambitions.
"Much of the emphasis on the emerging industries and the $1.7 trillion investment was focused on clean energy and clean energy technology," Bryson said, following a US-China Joint Commission of Commerce and Trade meeting.
Chinese officials have promised that overseas firms will have access to contracts during the growth in these sectors.
"We had a very good dialogue on China's strategic emerging industries and we welcome China's commitment that it will create a fair and level playing field for US companies in those industries," Bryson said.
According to Beijing, the targeted sectors include alternative energy, biotechnology, new-generation information technology, high-end equipment manufacturing, advanced materials, alternative-fuel cars and energy-saving and environmentally friendly technologies.
To fulfill the spending target, the central Chinese government itself would most likely not deliver the bulk of the money, but would seek to spur spending by corporations, investment by local governments and lending by banks....