China to Address Risks in New Infrastructure Initiative, According to Reuters

China Takes Steps to Address Infrastructure Imbalances and Risks

BEIJING – The Chinese government announced on Wednesday its commitment to tackle risks associated with fragmentation and imbalances as it aims to develop new infrastructure that will enhance its manufacturing sector.

China has successfully established the world’s largest 5G network and an extensive fiber-optic broadband system, alongside advancing capabilities in artificial intelligence. This information was disclosed in a notice by several state bodies, including the ministries of industry and finance, as well as the central bank.

The notice acknowledged the emergence of significant challenges in development, such as difficulties in coordination and integration, as well as notable regional disparities in the evolution of new information infrastructure.

These new infrastructure initiatives aim to foster the emergence of "new productive forces" within the economy while supporting the enhancement of various industries. The goal is to cultivate a robust manufacturing nation, as emphasized in the announcement.

The phrase "new productive forces," introduced by President Xi Jinping last year, underscores the importance of driving economic growth through innovation in advanced sectors.

With traditional infrastructure investments, such as roads and railways, yielding diminishing returns, China is shifting its focus toward "new infrastructure" projects. These initiatives will encompass advancements in telecommunications, artificial intelligence, and big data.