Amid a prolonged property market downturn and slowing economic growth, Beijing is once again turning to government-led infrastructure investment to stimulate the economy. After years of large-scale spending on highways, high-speed rail, and airports, government is shifting its focus underground. Upgrading urban utility networks has been identified as a key infrastructure initiative for 2026—the first year of China’s 15th Five-Year Plan (2026–2030)—with planned investment exceeding RMB 5 trillion (US$700 billion).
According to the draft “Urban Renewal 15th Five-Year Plan,” China aims to build or renovate approximately 770,000 kilometers of underground utility networks during the plan period, including natural gas, water supply, wastewater, drainage, and district heating pipelines. To support the initiative, the central government has allocated RMB 160 billion in ultra-long-term special treasury bonds for 2026—RMB 25 billion more than the previous year—with funding earmarked for underground pipeline projects.
Beijing views the initiative as both an economic stimulus and a long-term urban modernization strategy. Officials estimate the program could generate RMB 7.5–10 trillion in economic output by boosting demand for construction materials, equipment manufacturing, and smart infrastructure services, while supporting approximately 2.8 million jobs annually. The project is also intended to strengthen urban resilience, expand the use of underground space, and advance China’s green and low-carbon development objectives. Source: Xinhua, June 17, 2026
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