Source: Magazine of state grid   Author: Fanzhang   

COVID-19 struck the Chinese economy, enabling the supply side put off work resumption. Industrial added value had dropped by 13.5% on year-on-year basis, accumulative total of fixed asset investment flopped by 24.5%, total retail sales of consumer goods went down by 20.5%. Year-on year growth of production, consumption and investment was the lowest in the 20 years.

Hereby, it is a hot topic for enterprises to return to work and produce while preventing and controlling epidemic.As the central enterprise related to lifelines of national economy, State Grid Corporation of China worked in many ways to support companies from all walks back to work and production. During the period,central enterprises play important roles.

 UHV Speed up Construction and Pull Investment

Proactive promotion of UHV construction was mentioned in the key priority and 12 measures to combat epidemic, restore construction and help resume work and production of State Grid Corporation of China. State Grid’s UHV construction is beyond market expectation, boosting the market confidence when company shut down and  production was stagnant.

• State grid makes  "new infrastructure" concept more hot

The central economic work conference held at the end of 2018 defined the "new type of infrastructure construction", including 5G, artificial intelligence, industrial Internet and the Internet of things.Since the outbreak of the epidemic, China has paid much more attention to "new infrastructure". In addition, 2020 will be the final year for China to achieve the goal of building a moderately prosperous society in all respects. It is estimated that to achieve the set target, GDP growth this year must reach around 5.6%.Based on the economic situation in January and February affected by the epidemic, and the impact is still ongoing, the GDP growth target of 5.6% is under pressure."New infrastructure" has become an important tool for counter-cyclical adjustment and investment and production.

The "new infrastructure" includes seven major areas: 5G infrastructure, ultra-high voltage, intercity high-speed railway and urban rail transit, new energy vehicle charging piles, big data centers, artificial intelligence and industrial Internet.Among the government infrastructure investment, there is no statistics on the investment in new infrastructure construction.At present, the total investment in existing PPP projects of the ministry of finance is 17.6 trillion yuan, of which "new infrastructure" projects are less than 100 billion yuan, accounting for only 0.5%.Category iii "new infrastructure" projects, such as rail transit, park development and garbage power generation, will total 2.6 trillion yuan, or 14.7% of the total.The two together account for about 15% of the total PPP project library, but the project scale has a large space for future growth.