China’s acceleration of its ‘new infrastructure’ plan will support the government’s beneficiation ambition in the metals industry, boosting production of high-end metals as opposed to primary metals, industry analyst Fitch Solutions finds in its latest report.
Despite this being a long-held strategy as part of the Chinese government’s shift away from export-oriented growth and the pivot towards domestic consumption, the focus on high-tech infrastructure has been more concerted in 2020 following a slowdown in economic activity arising from the covid-19 pandemic as well as heightened tensions between the US and China, the report reads.
Fitch predicts this new infrastructure plan work in tandem with China’s other industrial policies such as Made in China 2025 and China Standards 2035 Plan – which together signal China’s ambitious long-term strategy of becoming the global leader in high-tech and innovative industries of the future.
New infrastructure projects including 5G networks, data centres and artificial intelligence systems, together with transport and energy infrastructure, namely ultra-high-voltage (UHV) technology, charging stations and high-speed rail, require a substantial amount of metals in their construction, especially lighter and more advanced metals, Fitch reports.
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