November 10, 2008

China government announced a $586 billion, or four trillion yuan, plan to bolster its economy, and as the New York Times points out, that "could also help fight the effects of the global slowdown ... at a time when major infrastructure projects are being put off around the world." The sum "represents about 16% of China's economic output last year, and is roughly equal to the total of all central and local government spending in 2006," The Wall Street Journal adds. "New spending of even half that amount would be substantial next to China's six trillion yuan annual budget for this year."

Compared by some economists to the New Deal enacted by President Franklin Roosevelt some seven decades ago, the Chinese plan would "ease credit restrictions, expand social welfare services and launch an infrastructure spending program that would include the construction of new railways, roads and airports," the Washington Post reports. But it's all the more striking because Chinese officials have insisted for months that the country wasn't suffering the economic tribulations rippling across the rest of an economic world in which China has become such an integral part.

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