China steps up stimulus spending at local level

China is stepping up stimulus spending at the local level seeking to counter its economic slowdown, with one inland city announcing plans for a whopping $130 billion in investment projects.

In earlier this week announcing plans for dozens of projects, officials in the central Chinese city of Changsha said increased investment was the "inevitable choice" to counter sluggish growth.

As part of the government's "mini-stimulus" program, several other cities have disclosed plans to subsidize housing purchases or otherwise act to support the construction spending that remains the lifeblood of China's economy.

It is unclear if Changsha's ambitious blueprint will be carried out fully. Many Chinese cities are already saddled with massive debt burdens from lavish spending in 2008-2009 meant to ward off the impact of the global crisis.