China reduces investments into important sectors because of corruption.

China may reduce investments into strategically important industrial sectors and infrastructure (such as building of high-speed lines or wind energy projects) because of corruption, reports governmental circles of China. According to them, the government is currently reviewing the investment program for 7 industries, which are originally designed for 3 years and includes an investment volume of $ 1.5 billion, reports Reuters.

They say that the cost cutting which is related to building of high-speed rail is directly connected with the resignation of the Minister of Transport in March being accused in corruption.

State Premier Wen Jiabao has threatened to take strong actions against the officials themselves who abuse the trust of the authorities and public funds for major projects, as well as their families.

Strategically important industries in China are recognized as follows: high-precision instrumentation, alternative energy, biotechnology, information technology, next-generation automobiles with transition to alternative fuels, energy-saving and environment-friendly technologies.

Beijing has been examining infrastructure projects as an opportunity to create new working places and an incentive to increase economic activity with growth. But authorities are more concerned with the problems of inflation, which continues to set new records.

11 July 2011
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