(Yicai) April 17 -- China’s fixed-asset investment rose 1.7 percent year-on-year in the first quarter, reversing a 3.8 percent decline for all of last year, as policymakers ramp up support for key sectors and private investment.

The improvement marks a key highlight in China’s economic performance this year, Wang Changlin, deputy director of the National Development and Reform Commission, said at a State Council Information Office press conference. The government will step up efforts to stabilize investment, with a focus on high-growth areas such as the digital economy, artificial intelligence, and commercial aerospace, while rolling out further policies to encourage private investment.

A series of measures will be implemented to expand effective investment in areas including “AI+” infrastructure, urban renewal, the national water network, and new energy systems, Wang said at the briefing in response to a question from Yicai. These initiatives are aimed at optimizing the supply structure and expanding domestic demand.

The first-quarter rebound was driven by the accelerated rollout of pro-investment policies and faster implementation of measures supporting private capital, Wang said. Large-scale equipment upgrades boosted investment in machinery and tools purchases by 13.9 percent, while private firms increased participation in key projects across transportation, energy, and water conservancy. Excluding real estate development, private investment rose 1.3 percent.

Investment in emerging sectors also gathered pace as regions developed "new quality productive forces" tailored to local conditions. In the first quarter, investment in high-tech industries grew 7.4 percent, with high-tech services rising 12.3 percent. Within this segment, investment in professional technical services and information services surged 29.5 percent and 20.9 percent, respectively.

Meanwhile, the acceleration of major projects played a significant role in stabilizing investment. Investment in projects with planned total spending of at least CNY100 million (USD14.6 million) increased 4.5 percent, while faster growth in railway and energy projects helped lift overall infrastructure investment by 8.9 percent. Investment in the aviation and water transport sectors jumped 43.3 percent and 34.1 percent, respectively.

Editor: Emmi Laine