China is launching a "new infrastructure" campaign to offset the economic impact of the coronavirus pandemic and boost sustainable growth. CGTN's Zheng Junfeng explains what the "new infrastructure" projects include.

China is often quick to respond with massive investment to shore up growth when facing economic difficulties. But this time, instead of a massive infrastructure overhaul, the country is seeking more targeted investments in projects that facilitate innovation and social development.

Seven areas of projects are considered new infrastructure, 5G networks, the industrial internet, inter-city transportation and inner-city rail systems, data centers, artificial intelligence, ultra high voltage, and new energy vehicle charging stations.

Many of these next generation technology areas were mentioned during a March 4th meeting of the Communist Party of China Politburo Standing Committee and earlier policy meetings in February.

GU FENG Co-founder & CEO AIWAYS Automobile "We notice that the new infrastructure campaign is a very hot topic recently. The new infrastructure is different from the old. They are more intelligent, smarter and more digital."

Local governments have responded quickly. Twenty-five provincial-level regions have put new infrastructure projects in their government work reports, with 21 intending to advance 5G network construction.

Policy incentives have guided market funds into the sectors but the government is also expected to encourage new infrastructure via special bonds, public-private partnerships and credit support. Gu Feng also calls for more policy upgrades for the building of EV charging stations.

GU FENG Co-founder & CEO AIWAYS Automobile "Since early this year, the coronavirus impacts the Chinese economy a lot. In terms of the EV charging poles construction, this situation must be delayed to some point. But it shouldn't be the stumbling block for the move, as the installation of the charging poles has been a long term plan. The relatively significant impact of delay might have been because of the regional supporting policy, such as how to support building charging poles in the residential community, the power expansion, the unified management of public parking lots. That urges more specific policy to be carried out."

Guotai Junan Securities estimates that "new infrastructure" investment will be about 100 billion yuan of the country's massive 17 trillion yuan Public-Private Partnership projects. So its boost to the economy is limited for now. But the trend of innovation and digitalization is irreversible. And its future growth potential and positive effect on other sectors could be enormous.

ZHENG JUNFENG CGTN "Although the investment scale of China's 'New Infrastructure' project is a relatively small part of the country's overall infrastructure investment, they represent the future, which is more intelligent and digital. And investment in the future is never too early, despite the interruption from the coronavirus pandemic. Zheng Junfeng, CGTN."