Infrastructure Spending: Official Explanation and Estate Sector

infrastructure spending: However, the real causes can be traced to reduced domestic investments and increasing transfer of capital offshore by both state-run and private-sector big companies, as well as to a decline in spending by the government, according to The Japan Times. The situation threatens to derail the intent of President Xi Jinping's regime to keep the economy afloat through infrastructure spending by the government and capital investment by the corporate sector, thereby ensuring his bid to gain absolute power at the party convention. An official explanation goes that adjustments are being made to eliminate bubbles in the real estate sector and to reduce corporate debt. The risk of China's economy plummeting toward the end of the year should not be discounted. ; The way Xi's leadership has managed the economy may be likened to a car-driving technique known as heel-and-toe shifting, which involves operating the throttle and brake pedals simultaneously with the right foot while facilitating normal activation of the clutch with the left foot. Beijing has coined the phrase new normal to propagate the arrival of an age of medium growth of the Chinese economy. Xi and his men have stepped on the brake pedal in their attempt to reduce excess production capacity as part of supply-side reform, but when the economy threatens to slow down sharply, they hit the accelerator by boosting infrastructure building and real estate investments. (news.financializer.com). As reported in the news.