China Plans To Invest $1.7 Trillion In Its Economy In Response To Global Economic Crisis

This article describes some of the trade issues between the US and China that were discussed in a recent meeting between US and Chinese trade officials. China anticipates chronic problems in the global economy. It plans to protect the Chinese economy from spillover effects by investing $1.7 trillion to stimulate growth in targeted industries. To put that investment in perspective, the Chinese economy, after correcting for price parity, is about the size of Japan's economy. Apparently, there are no conservatives in China demanding austerity and opposing industrial policy.