China unveils plan to expedite major projects

China is accelerating the construction of major State-backed projects and building a pipeline for 2027, as policymakers intensify efforts to expand effective investment, stimulate domestic demand and channel spending toward strategic infrastructure and technology.

The National Development and Reform Commission, the country's top economic regulator, said on Friday it is urging local authorities to coordinate physical construction with supportive institutional reforms under the "two priorities" initiative, which focuses on implementing major national strategies and building the nation's security capacity in key areas, while ensuring the prudent and efficient use of funds.

The aim is to expedite project delivery and generate tangible "physical workload" on the ground as quickly as possible, Li Chao, deputy director of the NDRC's policy research office, told a news conference in Beijing.

The NDRC is stepping up planning for a 2027 project pipeline, Li added.

The push comes as China actively transitions toward higher-quality growth, channeling capital into advanced manufacturing, new infrastructure and green transitions while reducing reliance on traditional real estate-driven expansion.

The NDRC said it is coordinating with relevant departments to accelerate the deployment of new policy-based financial instruments and expand support for private investment and optimize financing mechanisms for the "six networks" initiative. The network program covers water, power, computing, next-generation communications, urban pipelines and logistics.

Separately, S&P Global Ratings affirmed China's sovereign credit ratings at "A+/A-1" with a stable outlook on Friday. The agency said proactive fiscal support should help keep growth above 4 percent over the next one to two years, as the economy steadily navigates ongoing property adjustments.

Luo Zhiheng, chief economist at Yuekai Securities, said the heightened policy focus on the "six networks" indicates that key strategic projects are swiftly moving from the drawing board to the construction phase.

"As preparatory work concludes and construction picks up pace, infrastructure investment is poised to accelerate markedly in the second half of the year, providing solid support for overall fixed-asset investment," Luo said.

Xiong Yuan, chief economist at Guosheng Securities, said the "two priorities" initiative and network infrastructure will systematically address the shortage of high-return, bankable projects at the local level, though he noted that the structural transition toward emerging industries will be a steady, compounding process.

Su Jian, director of Peking University's National Center for Economic Research, said the projects under the "two priorities" initiative carry strategic, nationwide significance. By combining physical construction with institutional and market reforms, such initiatives provide immediate support to macroeconomic stability while laying a durable foundation for technological innovation, future industries and new quality productive forces.

The tangible benefits of targeted investment are already visible in strategic sectors such as semiconductors. NDRC data showed that investment in integrated circuit manufacturing in the first seven months of the year rose 11.5 percent year-on-year.

Among listed companies in the sector that had disclosed interim results by Thursday, aggregate revenue rose 12.8 percent year-on-year and net profit increased 99 percent, while research and development spending increased 13.4 percent, according to the NDRC.

Roger Sheng, vice-president at US research firm Gartner, said China is seeking a more flexible policy framework to mobilize resources in the integrated circuit sector while avoiding wasteful investment.

Chinese companies are narrowing the technological gap with global leaders, Sheng said, though bottlenecks remained in areas including lithography equipment.