Global Market: China eyes faster national infrastructure spending to steady growth amid local investment slump

China plans to spend around 7 trillion yuan (about $1 trillion) this year on centrally backed infrastructure projects including water networks, logistics, power grids and computing centres, with brokerage Changjiang Securities estimating nearly 26.9 trillion yuan over five years. However, the broader picture remains weak — China's fixed-asset investment contracted 5.7% year-on-year in H1 2026, with infrastructure investment down 2.4%, manufacturing investment down 1.2% and property investment plunging 18%. Beijing is tightening local government spending oversight and avoiding sweeping fiscal stimulus, instead recalibrating toward strategic high-tech and quality investments.