China announces €457bn spending package

China has announced a €457bn spending package to boost domestic demand while vowing to carry out “moderately easy monetary policies”.

A statement today on the government’s website says China’s Cabinet approved a plan to invest 4 trillion yuan (€457bn) on infrastructure and social welfare by the end of 2010.

It says China will adopt an “active” fiscal policy and will offer tax help of 120 billion yuan (€13.7bn) to enterprises.