David Barboza reports that the Chinese government has unveiled a massive economic stimulus package. US$586 billion will be spent in the next two years on a wide variety of infrastructure projects. Will this effort:
A) Help Chinese authorities cope with unrest that is resulting from widespread factory closures?
B) Provide infrastructure that will make China’s manufacturing sector even stronger in the decades ahead?
C) Bolster Chinese consumer spending — including spending on imported goods, thereby providing a boost to the global economy?
D) All of the above?
I’m going with D. This is a brilliant move, and one that suggests, among other things, that China is growing more comfortable with its role as a leader in the global economy.