We spoke too soon…

Yesterday, we asked if things were turning around for China’s economy and maybe we spoke too soon. At least Beijing thinks so. The State Council just released eight new measures to help boost the economy. Premier Wen Jiabao gave conflicting comments about the current state of the economy saying after a meeting of the State Council that the current economic plan was bearing fruit, while also telling state media that the foundations for economic recovery were still not stable. We’re not sure if he’s just hedging his bets or doesn’t want the country to get its hopes up. China’s railway industry won’t have to play any guessing games with how to spend their piece of November’s US$586 billion stimulus. Approximately US$2 billion will be invested in the country’s rail industry, raised from government bonds issued late last year. The money could create upwards of 150,000 new jobs. Unfortunately, foreign companies will be pretty much left out of the party as they’ll only be welcome as joint venture investors in rail car producers.