New infrastructure initiative to be crucial for economic development

The new infrastructure initiative is expected to become a crucial engine of economic development and job creation for China to stave off COVID-19's impact on the economy, a recent report by Cushman & Wakefield said.

Infrastructure investment has become an effective measure to stabilize and promote China's economic development at the current time, due to its sheer scale and ability to effectively stimulate economic growth and employment, the report said.

The report was released after the State Council called for new infrastructure development, including 5G, artificial intelligence, industrial internet and some other areas to offset the economic impact of the pandemic and boost sustainable growth.

In the past, government investments have been concentrated in high-speed rail, ports and airports. Now infrastructure investment focuses more on the development of cutting-edge science and technology to promote higher-quality economic development and to enhance social happiness and well-being through technological innovation, the report said.

According to the report, as China's economy has transitioned from the stage of rapid growth to one of high-quality development, the industrial supply chain is also moving to the mid-to-high end, creating new infrastructure requirements for a new era.

The report also identifies the three driving forces behind China's new infrastructure initiative: Hedging the impact of the pandemic, grasping new development opportunities, and supporting the transition of China's economy to its stage of higher-quality development. The report pointed out that infrastructure between and within cities can still be improved.

The report said intercity high-speed rail, urban rail transit, UHV and electric vehicle charging networks are all additions and improvements to urban planning.

"The gradual improvement of new infrastructure will enable new technologies and skills to be widely applied. Technologies such as 5G, artificial intelligence, big data and an industrial internet network will catalyze the development of smart manufacturing, smart energy, smart medical care, smart transportation, smart logistics and smart retail," Sabrina Wei, chief policy analyst at Research of Cushman & Wakefield, said.:

Wei said the work on intercity high-speed railway or rail transit, UHV and electric vehicle charging networks will supplement existing infrastructure development and play a positive role in promoting the development of domestic consumption and urban agglomerations.