Chongqing- At the 2022 Two Sessions, the government work report was delivered to make use of the government investment funds and expand areas for effective investment.
In detail, the central budget has invested 640 billion yuan, 30 billion yuan above last year. Added to the 1.2 trillion yuan of special bonds issued in the fourth quarter of last year, the real state of the economy will be revealed this year.
Deputies to the National People's Congress and the CPPCC National Committee members believe that expanding effective investment is important to stabilize economic growth. The new infrastructure construction was given a potent impetus.
The news briefing of the State Council Information Office gave a detailed interpretation of the key areas and projects of new infrastructure construction this year on March 7. Some national schemes are highly consistent with Chongqing's 14th Five-Year Plan.
For example, the network improvement project for small and medium-sized cities in the central and western regions, the 5G integration application demonstration project, and the national data cluster are some of the national highlight projects.
How should Chongqing target the new national infrastructure policy to reap the benefits? Effective and private investment are two critical points from the analyst's insight.
Western (Chongqing) Science City. (iChongqing file photo)
Effective investment
According to analysts, the investment's effectiveness is reflected in response to policy trends and hot spots.
The hot topics discussed at Two Sessions could be the new investment opportunities, like channeling more computing resources from the eastern areas to the western regions, building ten national data center clusters, constructing a new national internet exchange center, and others.
Chongqing has to seize the opportunity to connect with national projects in new infrastructure investment.
For example, Chengdu and Chongqing have started the construction of the national hub node of the integrated computing network in mid-February. The country's first Software-Defined Hardware (SDH) System on a Chip (SoC) chip design project was also launched in the Western (Chongqing) Science City.
New energy vehicles, new-generation information technology, healthcare, business, trade service, and significant infrastructure construction are among the fields of investment.
What's more, effective investment requires forward-thinking, partly because some of the research projects have a large investment scale and long cycle, calling for more patience.
Hense this asks for the government as the leading role to plan ahead and invest heavily in scientific-based projects with rational allocation of resources.
"It is necessary to drive market entitles to increase social investment through government investment and financial support," said an analyst. "If China plays its cards right, there should be room for effective investment."
The China (Chongqing) Pilot Free Trade Zone. (Photo/ Chongqing Municipal Commission of Commerce)
Private investment
In addition to the public purse, the government work report points out that private investment enhances development potential and economic vitality.
Currently, new infrastructure investment has entered a new phase of the critical period led by significant projects. Some of them relying on government investment alone is not enough. It should activate the private pocket to expand the sector's driving force from analysts.
Liu Zhendong, a member of the CPPCC National Committee, thinks that the government should improve the related investment approach as soon as possible to solve the current problems of no investment in private enterprises.
On the one hand, the government could set up a series of beneficial plans to clear up all kinds of barriers and to expand the scope of private investment access.
On the other hand, establishing public platforms for investment projects and policies is also an effective way to encourage private capital to enter the new technologies, new industries, and new infrastructure.
In recent years, Chongqing has introduced a host of private investments in the new infrastructure segment and achieved significant results. Automobile and electronic information are some of the most prominent pillar industries.
Recently, the government issued the list of major projects in the Chengdu-Chongqing economic circle in 2022 with a total investment above 2 trillion yuan and 160 major landmark projects.
Tencent, Huawei, and other top companies are on the list, highlighting Chongqing's massive appeal to private investment.