BEIJING, Nov 11: A $586 billion economy-boosting programme is China’s “biggest contribution to the world,” Premier Wen Jiabao said amid hopes that heavy spending on construction and other projects will help support global growth by fuelling demand for imported machinery and raw materials.

The huge 4 trillion yuan ($586 billion) package, announced on Sunday, comes as President Hu Jintao prepared for next weekend’s Washington meeting of leaders of 20 major economies to discuss a response to the global financial crisis.

“China has really set the pace for expansionary policies elsewhere,” Tim Condon, Asia regional economist for the Dutch bank ING, said on Monday.

Wen, the country’s top economic official, said the plan is meant to boost investment and consumer spending, maintain export growth and promote corporate competitiveness and financial reform, state television reported on its national evening news. It said he made the comments at a meeting of government leaders.

“We must implement the measures to ensure a fast and stable economic development,” Wen said. “They are not only the needs of the development of ourselves, but also our biggest contribution to the world.”

The plan calls for higher spending through 2010 on airports, highways and other infrastructure, more aid to the poor and farmers and tax cuts for exporters.

That could boost demand for iron ore from Australia and Brazil, factory and construction equipment from the United States and Europe and industrial components from throughout Asia.

“Faster growth in China will be better for its neighbours. For every country in the region, it’s either their top trading partner or is on the way to becoming the top,” Condon said.—AP