In China, the National Development and Reform Commission (NDRC) is in charge of the nation's macroeconomic planning.
The NDRC has approved public works projects with hopes of stimulating China's sluggish economy and fending off fears of deflation.
Here's a short article from the Asia Times (Nov. 28) titled "Market concerns grow over potential deflation risks":
The sluggish growth recorded in recent economic data, alongside downward pressure on the price of crude oil and ferrous metals, have added to the market's anxiety about deflation, the Securities Daily reported.
[The] chief economist of New Era Securities, believes that investors should be wary of deflation risks when the price of crude oil and ferrous metals are declining at the same time.
Regarding the slowdown of economic activities, infrastructure investment has become the main force to stabilize economic growth, said an analyst at Guotai Junan Securities.
To aid economic development, the National Development and Reform Commission has accelerated the review and approval process of infrastructure projects.
The number of projects approved by the NDRC in the third quarter was 4.8 times more than that of the second quarter, and 2.6 times that of the first quarter.
Elliott Wave International's November Global Market Perspective commented on China's effort to keep the economy strong through public works projects:
China recently completed a new bridge that will connect Hong Kong and Macau to mainland China. At a Fibonacci 34 miles long (or, if you prefer, a Fibonacci 55 kilometers), the bridge is the most expansive sea-crossing bridge in the world. A Hong Kong politician commented that while the structure is "not exactly necessary," it is useful as "a political symbol or icon to remind Hong Kong people that you are connected to the motherland." In a bear market, as traditional divisions among the Chinese return to prominence, the bridge will become an iconic sore spot. It will serve as a reminder of the days when the government tried mightily to keep the economy humming with public works projects. Many will rue construction of an unnecessary span that assisted in pushing China into a morass of bad debt and helped halt prosperity for years to come.
Elliott Wave International's analysts hold the view that the world is on the cusp of a historic deflation.
Prepare by reading this free report: "What You Need to Know Now About Protecting Yourself from Deflation."