In the wake of the financial crisis, China invested more than 1.8 trillion yuan (US$264 billion) in transport infrastructure. Economists predict the trend will continue in 2010.

Zhou Jichang, chairman of China Communications Construction Ltd., said that transportation construction is playing a key role in China’s economic recovery and the government will continue to step up investment in this field. Zhou is a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

In his March 5 government work report, Premier Wen Jiabao stated that China had implemented a plan to invest an additional 4 trillion yuan over two years. Central government public investment in 2009 amounted to 924.3 billion yuan. Of this, 23 percent was allocated to major infrastructure projects.

Zhou said: “Why does such big money go into transportation construction? It is because this field stimulates other related industries, such as steel, energy, tourism and so on.”

According to China’s 2009 Economic and Social Development plan, an additional 5,557 kilometers of railways and 98,000 kilometers of highways were opened to traffic, including 4,719 kilometers of expressways. A total of 35 civilian airports were built, upgraded or expanded.

“Thanks to the government’s stimulus package, infrastructure and basic industries have been strengthened,” Zhou said.

“For example, major railway projects, including the Beijing-Shanghai, Harbin-Dalian and Lanzhou-Urumqi trunk lines, progressed smoothly. Construction of the national expressway network proceeded in an orderly manner. The Hong Kong-Zhuhai-Macao Bridge project has been started,” he told China.org.cn.

Figures from a report on the Implementation of the Central and Local Budgets for 2009 indicated that expenditure on transportation amounted to 217.8 billion yuan, 115.4 percent of the budgeted figure, an increase of 60.7 billion yuan or 38.6 percent.

The excess consisted mainly of increased spending on highway construction resulting from unexpectedly high vehicle sales tax revenue, which regulations require to be spent for this purpose.

The Ministry of Finance announced on March 5 that the government spent 76.5 billion yuan on the construction of the expressway network, passenger railway lines nationwide, and trunk railway lines in the western region.

Another 62 billion yuan was used to increase subsidies for rural highways in ethnic minority, border, and poverty-stricken areas in the central and western regions.

“I think China’s network of highways and expressways is almost complete. But as for the railways, the work is just starting,” Zhou told China.org.cn. “In the next few years, the government should open up the railway construction market step by step.”

Zhou predicted railway investment will increase. But he said the government should step up supervision of construction quality.

According to China’s 2010 Economic and Social Development Plan, the total length of railways and highways open to traffic will reach 91,000 kilometers and 3.927 million kilometers in 2010, up 5.8 percent and 2.6 percent respectively.