China confirmed to visiting U.S. officials that Beijing plans to pour $1.7
trillion into the so-called "strategic sectors" over the coming five years,
U.S. Commerce Secretary John Bryson told reporters on Monday.
The confirmation of the huge sum of money showed Beijing's ambition to shift
the growth engine of the world's No.2 economy to cleaner and hi-tech
sectors while also boosting domestic growth as the global economy struggles.
Reuters reported a year ago that Beijing was considering investing 10
trillion yuan ($1.7 trillion) over five years in seven strategic industries,
but Beijing has never confirmed the price tag of the package, which was 2.5
times as big as the eye-popping 4 trillion yuan fiscal stimulus launched
during the global financial crisis in 2008.
There were also concerns that China would scale back some investment plans
in these sectors, notably manufacturing of hi-speed railway equipment, after
a deadly train crash.
But Bryson said the Chinese officials in Chengdu have put up a number that
is unchanged from the very beginning.
"Much of the emphasis on the emerging industries and the $1.7 trillion
investment was focused on clean energy and clean energy technology," Bryson
said, referring to discussions at the U.S.-China Joint Commission on
Commerce and Trade (JCCT) meeting in the southwestern Chinese city of
Chengdu.
Bryson added that Chinese Vice Premier Wang Qishan said U.S. and other firms
would enjoy the same opportunities as Chinese firms to take part in the
growth of these sectors.
"We had a very good dialogue on China's strategic emerging industries and we
welcome China's commitment that it will create a fair and level playing
field for U.S. companies in those industries," Bryson said.
According to Beijing, the targeted sectors include alternative energy,
biotechnology, new-generation information technology, high-end equipment
manufacturing, advanced materials, alternative-fuel cars and energy-saving
and environmentally friendly technologies.
To fulfill the spending target, the central Chinese government itself would
most likely not deliver the bulk of the money, but would seek to spur
spending by corporations, investment by local governments and lending by
banks.
