Shocked by the speed and depth of the economic downturn in 2008, the Chinese government responded vigorously with a very large stimulus package. The Chinese leadership has continued to modify the program, adding initiatives and layers of complexity, while sticking to the original headline numbers. The overall stimulus program can be broken down into three interrelated components: an investment plan, a set of funding mechanisms, and a series of industrial policies. Together, these initiatives make up a large, activist intervention in the Chinese economy that will shape the trajectory of Chinese development for a decade or more.
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