China revs up spending plan as economy cools

The Chinese government is expediting plans to invest billions of dollars in infrastructure projects as its economy shows signs of cooling further, with investment growth slowing to a record low and consumers turning more cautious about spending.
With its trade war with the United States threatening to pile more pressure on China's already slowing economy, Beijing on Tuesday reported downbeat economic data, rolled out a $14 billion urban railway plan and pushed local governments to speed up issuance of special bonds for funding infrastructure projects.
Official data showed fixed-asset investment expanded by a less-than-expected 5.5 per cent in January-July, a result of Beijing's crackdown on lavish local government borrowing for projects to boost growth.
Industrial output also undershot expectations, weighed down by pollution curbs and an uncertain trade outlook, adding to expectations that authorities will roll out more policy stimulus.
The July data comes as the US prepares even tougher trade tariffs on imports from China.
Since the trade war started, Beijing has shifted its focus to boosting domestic demand and is taking a more measured approach in its campaign to curb...

Full story