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BEIJING — China is dampening expectations that it will use anothermassive government stimulus to stimulate its economy, even as it'sgiving the green light to more infrastructure projects. "The Chinese government's intention is very clear, it will notissue another large-scale stimulus plan to boost robust growth,"the official New China News Agency said in an article publishedTuesday. The statement helped drive stock markets down across Asia onWednesday as investors sought clues as to how the world'ssecond-largest economy would respond to its biggest economicchallenge in three years. Weak foreign demand for its exports, a cooling real estate marketand diminished bank lending have slowed Chinese economic expansionto a pace not seen since the aftermath of the 2008 financialcrisis. Beijing has already indicated it will act to stabilize growth, butit can't afford to repeat its 2009 strategy, which included $586billion in public spending and the loosening of bank credit tobusinesses and consumers. That led to inflation, skyrocketingpublic debt and asset bubbles that still bedevil the Chineseeconomy today. "The Chinese government will not use stimulus money to reach thegoal of 'stable growth' like they did last time because it'sunsustainable," Tuesday's New China News Agency article said. Still, speculation had grown in recent days that China's officials would consent to more stimulus than they would admit topublicly. In recent days, municipal officials from around China were seen atthe powerful National Development and Reform Commission's Beijingheadquarters hoping to get approval and funding for new projects. The mayor of Zhanjiang, a city in southern Guangdong province, wasphotographed walking out of the commission's offices Sunday kissingapproval papers for an $11-billion plan to create a steelmanufacturing base. "Everyone was double-parked in government cars last week," said astorekeeper across the street Wednesday who would give only hislast name, A (an ancient and rare surname descended from theMongols). Analysts said China is shooting for a modest increase in governmentspending, or what Standard Chartered Bank economist Stephen Greencalled a "mini-me" stimulus. China "is introducing a measured but still significant set ofstimulus measures, which should begin to affect growth inAugust-September," Green wrote in a research note. Those measures appear to include infrastructure projects such asairports, subsidies for energy-efficient household appliances andan invitation for the private sector to invest in state-dominatedindustries such as railways. China's central bank could also reduce the amount of capitallending institutions must hold in reserve and lower benchmarkinterest rates to spur growth. Some analysts lamented that China appears to be using the sameplaybook from 2009 to stave off a slowdown. "Many government officials argued repeatedly during the past yearthat tolerating slow growth is critical for rebalancing theeconomy, improving the quality of growth and sustaining it at arapid pace," economists at Barclays wrote recently in a report."Yet the government is already implementing a second stimuluspackage. Near-term growth may be well supported now, but what aboutnext year and the year after? "These beg the more fundamental questions if whether the economycan ever graduate from the state-investment-driven stage andwhether the economic transformation will ever happen.". david.pierson@latimes.com. The e-commerce company in China offers quality products such as China Nintendo WII Repair Parts , China MMC Flash Memory Card, and more. For more , please visit PS3 Slim Repair Parts today!
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