For the third year, China’s National Development and Reform Commission (NDRC) has planned, and the government will issue in 2025, a trillion yuan worth of long-term, low-interest bonds, “for special purposes” of the most important economic infrastructure developments.
According to South China Morning Post on Nov. 20, 2024, “The ultra-long-term special government bonds the government sold this year [i.e., during 2024] came with a range of investment terms—reaching maturity after 20 years, 30 years or 50 years—and yield rates from 2.19% to 2.57%. As indicated by the name, these bonds are designated for specific, or ‘special’ purposes.” For comparison, China’s Loan Prime Rate for maturities over 5 years is currently 3.85%.
This is what the late statesman and American System economist Lyndon LaRouche taught as “a credit policy,” in remarks shown in a video during Dec. 7 of the Schiller Institute’s international conference Dec. 7-8.
The trillion-yuan issuances announced on Dec. 7 by the NDRC for 2025, reported by Xinhua, are equivalent to $139 billion at the current rate of exchange. Their “special purposes” focus on “constructing railways, highways and airports along the Yangtze River; building high-standard farmlands in northeast China; and the shelterbelt program in northeast, north and northwest China.”
