China 4 Trillion Stimulus Package

Due to the recent worldwide financial crisis, Chinese economy has been cooling down, with a slow growth to 9 percent in 2008, (down from 13 percent in 2007). In addition, Global demand for Chinese products dropped drastically and numerous South China factories began to close. To battle this global economic meltdown, the Chinese Government is implementing a RMB 4 trillion Economic Stimulus Plan to boost the economy in the short term while providing stability in long term economic development.

The National Development and Reform Commission, China's macroeconomic management agency has structured the RMB 4 trillion budget in the following:

- RMB 1.8 trillion [ Construction Projects [Railways , highways, airports, and electrical grids]
- RMB 1 trillion [ Rehabilitating areas in Sichuan earthquake
- RMB 350 billion [ Environmental developments
- RMB 280 billion [ Prop up the housing market
- RMB 160 billion [ Independent innovation
- RMB 40 billion [ Health Care and Education

Opportunities for Finland:

• Infrastructure Projects
- Construction Projects Development
 [ Connection & Expansion in airports, and railway system
 [ Increase transportation effectiveness

• Renewable Energy Projects
- Environmental Projects Development
 [ Shift to green focused economy, Wind Power, Solar and Renewable Energy
 [ Refine and build power plants, oil refineries, and a second west east gas pipeline.

• Water & Environmental Protection
– RMB 3 billion for drinking water projects covering a rural population of 15.19 million
– RMB 3 billion to reinforce 320 large and medium sized dams
– RMB 3 billion for irrigation ditches in China's grain producing heartland
– RMB 7 billion for water conservancy projects
– RMB 2 billion to speed south-north water diversion project

• Health Care and Industrial Automation Initiatives
- RMB 40 billion health care and education
- RMB 160 billion for independent innovation and structural adjustment, meant to spur growth in the hard hit manufacturing sectors.

Finnish Companies Entering Chinese Market Needs China Knowledge

• Finnish Companies that specialize in engineering, design, construction, energy, and other infrastructure services could see the best opportunities.
• National officials' growing concern about severe water shortages in and around Beijing has increased the likelihood that environmental projects in China's north- particularly water treatment plants and drinking water projects are the high priority in 2010.
• However, Finnish Companies should be aware that the majority of project contracts and license will be awarded at the provincial and municipal level and that opportunities vary greatly by sector and targeting must be made at Municipal Level.

Fintrade Mercer provides inclusive on the field China Know How Corporate Solution, for more information please contact: common@fintrade.com.hk