The Chinese Get Fiscal Stimulus

China's leadership is contemplating a RMB 400bn ($58bn) stimulus package that includes large spending on a backlog of transportation projects like subways and railroads, according to JPMorgan. The Chinese government, unlike that of the United States, understands the benefits that infrastructure investments have on increasing efficiency and stimulating a slowing economy. JPMorgan predicts Chinese leaders will release the stimulus once we see more signs of a weakening economy and commodity prices fall further, which would reduce the input costs for strained Chinese producers. If exporters, which make up 37.5% of GDP, are badly hit and shed jobs, infrastructure investment may even prop up private consumption, which has held up remarkably well despite inflating food prices and a falling stock market.

Snapshot asks, can we learn how to invest in public infrastructure and stimulate a slowing economy from the Chinese government?

JPMorgan - Assessing China's Near Term Growth Risks
China Financial Markets Blog - Making sense of what comes after the Olympics
Managing the Dragon - ATO (After The Olympics)
Caijing - A Proposed Economic Stimulus Package