US$400B to boost infrastructure spending by $20B in the second half of 2019 and to create 2,000 jobs.
China has been investing heavily in infrastructure since the global financial crisis, including a $50 billion plan to build an interstate highway linking the north-east and north-west provinces.
The US$4.5-billion project, known as the Northern Gateway, is to be built on an existing pipeline through Canada and the United States, with a pipeline to ship tar sands crude from Alberta to the port of Vancouver.
The $7.5 billion Trans-Pacific Partnership would open the way for the expansion of this project to other parts of the Pacific Rim.
Tessco’s China-US investment program is expected to boost Chinese infrastructure spending to $40B over the course of the second year, up from $30B in 2020.
The program aims to invest US$10B over five years and create 2.8,000 new jobs, it said.
Chinese investors have poured into infrastructure in China in recent years, with some US$1.2 trillion invested in the country over the past decade, according to a report by McKinsey & Co. While China’s economic growth has slowed since the Great Recession, its economic growth is expected for the next decade to be around 3%, which would be the slowest since the 1990s, the report said.
The country is also in the process of reforming its economy.