Since the trade war started, Beijing has shifted its focus to boosting domestic demand and is taking a more measured approach to curbing financial risks and debt.
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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. With its trade war with the United States threatening to pile more pressure on China's economy, Beijing 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 percent in January-July, a result of Beijing's crackdown on lavish local government borrowing for projects to boost growth.Local governments are allowed to issue 1.35 trillion yuan ($196 billion) of such bonds this year.Investment had been expected to grow 6 percent in the first seven months of the year, steady from January-June.It accounts for about 60 percent of overall investment in China.But growth in infrastructure spending slowed to 5.7 percent in the first seven months from 7.3 percent.Real estate investment jumped 13.2 percent in July year-on-year, the fastest in nearly two years and higher than June's 8.4 percent, according to Reuters calculations.
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