Financial Times FT.com

China pins growth hopes on rail

By Jamil Anderlini in Beijing

Published: November 4 2008 17:26 | Last updated: November 4 2008 17:26

As the global economy heads toward recession and the Chinese export machine starts to sputter, Beijing is hoping to boost domestic demand using a very traditional strategy – building railways.

In the late 1990s when it was confronted with the Asian financial crisis and widespread insolvency in its state-owned sector, the Chinese government set out to prime-pump the domestic economy by building roads.

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