Mar. 3 – The March issue of China Briefing magazine is online and available for download (complimentary subscription available).

The cooling Chinese economy, which saw growth slow to 9 percent in 2008, is having a profound effect on the country. Millions of migrant laborers are losing their jobs and domestic stocks are on a roller coaster. As consumer demand for Chinese products dropped worldwide and factories all over South China began to close, Beijing became increasingly concerned with the economic and social stability of the country.

In this issue we examine the massive RMB4 trillion stimulus package the Chinese central government announced last year as part of its efforts to boost the domestic economy. The new plans provides for increased infrastructure projects including railway and power plant construction, water resource management, environmental protection, and initiatives to aid China’s large rural population. We also examine some of the tax reforms and subsidies the government has introduced in an effort to keep the growth rate above 8 percent. China is intent on spending all of the RMB4 trillion within the next two years and the effect that this huge stimulus will have on the nation is likely to be profound.

Finally, we continue our monthly series on second- and third-tier cities in China, focusing this time on Jilin, Ningbo, Fuzhou, Yichang and Chengdu.