China’s New Infrastructure initiative is an ambitious new central government policy designed to channel large-scale investment into high-tech industry sectors, with the objective of kickstarting the nation’s economic growth and boosting future job creation.
Devised primarily in response to the unprecedented shocks inflicted on China’s economy by the COVID-19 crisis, the initiative represents a departure from central government infrastructure planning of the past, and reflects China’s transition towards a new economic era.
Much of the policy intent is familiar from previous infrastructure stimulus plans — overarching economic objectives, nationwide construction, and on a grand scale — yet, as the name infers, this time the targets are new, with investment focused onto leading-edge science and technology sectors. The seven key industry sectors included in the initiative are bound by the common thread of technological innovation and potential for development of intelligent systems. This infrastructure plan is tasked with recharging economic growth and to create future employment, but is also designed to help shepherd China’s economy through its transition into a new era of higher-quality, innovation-led development, and to enhance overall social stability and wellbeing.
In this report we will identify the factors behind the policy, summarize the key infrastructure sectors involved, and examine the implications for commercial real estate.