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China's fixed-asset investment (FAI) returned to growth in the first two months of 2024, rising by 1.8 percent year on year and surpassing expectations, according to Caixin. Michael Pettis highlighted the increase, which was driven by a jump in infrastructure spending.
The data point suggests renewed momentum in Chinese capital expenditures during the beginning of 2024.
The renewed momentum in China’s capital expenditures aligns with previous debates over the nation’s economic direction, including concerns that a subdued GDP target could exacerbate existing challenges such as debt and deflation. These developments also follow Beijing’s introduction of a sweeping $1 trillion national venture capital fund aimed at invigorating technological innovation and sustaining longer-term investment growth.