On Tuesday, Shanghai announced eight infrastructure projects with a total investment of 1.8 trillion yuan (USD 257 billion) after the city was hit hard by COVID-19 lockdowns in April and May.

It is to be noted that the economy of China’s biggest city declined 13.7 per cent in the second quarter, the worst performance among all 31 of China’s province-level regions. In eight months of the year, infrastructure investment in China’s commercial hub dropped 27.4 per cent versus an 8.3 per cent gain nationwide.

Shanghai’s infrastructure push aims to revive sluggish economic growth, hurt by COVID outbreaks and lockdowns, property downturn, sluggish domestic consumption, and a fading trade outlook. To stimulate growth, authorities have also adopted an old strategy, issuing debt to fund big public works projects.

The said projects mainly include a transport hub in eastern Shanghai’s Pudong area, urban railways and housing improvement. It also involves offshore wind power demonstration projects and a nature park. Recent months have witnessed contracts for 597 big projects and investments of 941 billion yuan. Policymakers have also announced more than 50 economy-supporting measures.