China dumps trillions of RMB on distressed northeast

China is ploughing trillions of renminbi into projects in its northeastern rust belt in an effort to revive growth in one of the country’s worst-performing regions, one of the clearest signs to date that Beijing is attempting to stimulate its way out of slowing economic growth, reports the Financial Times. In the first quarter of this year the north-east, home to the state-backed heavy industrial companies and state-owned farms that form the Communist party’s traditional support base, reported some of the slowest growth rates in China. One province, Liaoning, reported negative growth — the first provincial contraction in seven years. The cash, earmarked for about 130 separate projects, could be dispensed over the next three years.