China benefits from pro-growth policies in 2009

A cornerstone of China's fiscal and monetary policies in the wake of the global financial crisis was a stimulus plan worth around 4 trillion yuan. Launched in November last year, a combination of fiscal and monetary polices, funded by unprecendented loans has made the 8 percent growth rate not just a target but a very real possibility. CCTV reporter takes a look at the different key sectors that have benefited from pro-growth policies and subsidies.

4-trillion-yuan investment

On November 5th, 2008, China's central government decided to initiate a 4-trillion-yuan stimulus plan. The scheme would go into effect during the next two years on fixed asset investment. Just one year later, according to figures from the National Statistics Bureau, investment increased more than 30 percent in the first two quarters and contributed to 7.3 percent of the nation's GDP growth in the third quarter.

Export back to $100 bln level

To encourage exports, China has increased the export tax refund rate seven times since August of last year. It has risen to 12 percent. With other polices -- such as expanding the coverage of export credit insurance -- exports rebounded in the first half, and the monthly export volume recovered to over 100 billion U.S. dollars between July and October. Figures for November and December are expected to be even higher.

Consumption rises by 17.2%

According to the data from the Ministry of Commerce, the rural home appliance program has generated sales of 50.8 billion yuan in the first nine months. Meanwhile, the China Association of Automobile Manufacturers says vehicle sales hit 10 million units between January and October. Annual sales could reach 13 million by the end of 2009, making China the biggest auto market in the world. Total retail sales for consumer goods increased more than 17 percent during the same period.

The World Bank has twice raised its forecasts for China's economic growth rate this year, from 6.5 percent to 7.2 percent and most recently to 8.4 percent.