China Deploys $70 Billion Policy Tool to Boost Sagging Investment
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China has fully deployed a 500 billion yuan ($70 billion) new policy tool to boost investment and has allocated a separate 500 billion yuan from unused local government debt quotas, as the country moves to counter a decline in investment.
The stimulus measures come as fixed-asset investment contracted year-on-year in the first three quarters, increasing the drag on economic growth.
The 500 billion yuan from the policy tool has financed more than 2,300 projects with a total investment of about 7 trillion yuan, Li Chao, a spokesperson for the National Development and Reform Commission, said at a press conference on Oct. 31. Key sectors include the digital economy, artificial intelligence, consumer infrastructure, and urban renewal projects like transportation and energy, Li said.
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- China deployed 500 billion yuan ($70 billion) to boost investment, funding over 2,300 projects worth about 7 trillion yuan in strategic sectors.
- An additional 500 billion yuan from unused local government debt quotas was allocated, including 200 billion yuan in special-purpose bonds for provincial investment.
- The stimulus aims to revive capital spending and ease local government financial pressures, though analysts say more policies are needed for corporate receivables.
- China Development Bank
- The China Development Bank is one of the three policy banks funding a 500 billion yuan policy tool. This tool aims to stimulate investment across sectors like the digital economy, AI, and urban renewal projects, financing over 2,300 projects with a total investment of around 7 trillion yuan.
- Agricultural Development Bank of China
- The Agricultural Development Bank of China is one of three policy banks in China that fund a new 500 billion yuan policy tool. This tool is designed to boost investment across various sectors and support local governments.
- Export-Import Bank of China
- The Export-Import Bank of China is one of three policy banks in China responsible for funding a new 500 billion yuan policy tool. This tool aims to boost investment in over 2,300 projects across various key sectors, such as the digital economy, artificial intelligence, and infrastructure development.
- April 2025：
- The new 500 billion yuan policy tool was first proposed at a Politburo meeting.
- By the first three quarters of 2025：
- China's fixed-asset investment contracted year-on-year.
- Oct. 17, 2025：
- The Ministry of Finance announced that the 500 billion yuan allocation (an increase of 100 billion yuan from 2024) is intended to help local authorities resolve debt, settle arrears, and expand investment.
- Oct. 31, 2025：
- Li Chao, spokesperson for the National Development and Reform Commission, confirmed at a press conference that China has fully deployed the 500 billion yuan policy tool, financing over 2,300 projects.
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