China announces $586 billion stimulus plan

By SCOTT McDONALD, Associated Press Writer Scott Mcdonald, Associated Press Writer 1 hr 45 m
n Shanghai, China, Tuesday Oct. 21, 2008. In the foreground …
BEIJING – China unveiled a $586 billion stimulus package Sunday in its biggest move to inoculate the world's fourth-largest economy against the global financial crisis.

The Cabinet approved a plan to invest the money in infrastructure and social welfare by the end of 2010, a statement on the government's Web site said.

Some of the money will come from the private sector. The statement did not say how much of the spending is on new projects and how much is for ventures already in the pipeline that will be speeded up.

China's export-driven economy is starting to feel the pinch of weakening U.S. and European economies, and the government has already cut key interest rates three times in less than two months in a bid to spur economic expansion.

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http://news.yahoo.com/s/ap/20081109/ap_on_re_as/as_china_stimulus_package;_ylt=AsgaO2hqIJIASfH0RcNVjy2s0NUE

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