CHINA CHINA Thomas Clouse Global

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CHINA CHINA Thomas Clouse Global Powered By Docstoc
					CHINA
Thomas Clouse
Global Finance; Apr 2009; 23, 4; Docstoc
pg. 10




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Description: China is pouring money into railroads and energy production as the implementation of the country's 4 trillion yuan ($585 billion) stimulus package moves forward. Urban fixed asset investment grew by 26.5% year-on-year in January and February. The higher domestic spending, China's leaders hope, will offset the economic effect of the country's export contraction. Responding to slowing sales, the Chinese government in January cut sales tax on small-engine automobile purchases and is planning to subsidize small-vehicle purchases for rural residents.
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