BEIJING (AP) -- China's government said Monday it will launch projects to attract private investment in energy, health and other industries as it tries to reverse an economic slump.
The Cabinet announcement adds to a flurry of efforts to stimulate growth that has fallen to a three-year low, raising the threat of job losses and social unrest. The International Monetary Fund said last week China probably has achieved a "soft landing" but warned "global headwinds are increasing" due to Europe's debt crisis and a weak U.S. recovery.
Beijing said previously that boosting private sector investment is a key part of its recovery plan but there is no sign struggling entrepreneurs are willing to spend. Some private businesspeople say monthly sales have fallen by up to 50 percent in recent months.
"We will launch demonstration projects in such fields as railways, city government, energy, telecoms, finance, health and education to draw private investment into these areas," the Cabinet statement said.
That's year over year. For sequential quarters, China is in a recession. Around 10% of "growth" in China was housing. The rest of their economy is contracting. It is worse than their official numbers are letting on as you can tell by their unprecedented moves to act quickly. They are worried as they should be. Western Europe and the US are already in or will soon be in recession.
It is going to be swift when contagion kicks in and whole countries default in rapid succession.