China’s central planning department appears to have ended a year-long hiatus on allowing urban rail projects to move forward, after giving the green light to a light-rail and subway project in the northern city of Changchun, Caixin reports.
The National Development and Reform Commission had not approved an urban-rail construction project since last August, due to concerns that this kind of project was fueling local government debt.
But the commission gave the go ahead to Changchun’s $11.45 billion project in late July, the Jilin provincial government announced on Friday. The move is another sign that Beijing is shifting toward a pro-growth stance and loosening its deleveraging campaign amid concerns that China’s economy is slowing too quickly.