Chinese Premier Li Keqiang
Chinese Premier Li Keqiang (R) speaks to President Xi Jinping as they leave after the opening of the annual full session of the National People's Congress Reuters

China has announced $260bn worth of infrastructure projects to arrest a growth slowdown in the world's second-largest economy, despite its adoption of the "new normal" model that tolerates a slower pace of economic expansion.

The country is looking to invest CN¥1.6tn (£170bn, €235bn, $260bn) in infrastructure projects to spur growth, according to a work report submitted by Premier Li Keqiang at the ongoing National People's Congress.

As per the plan, China will invest over CN¥800bn in railway construction in 2015, and another CN¥800bn in major water conservancy projects.

It expects to open to traffic more than 8,000 km of railway track in 2015, and to accelerate construction on the 57 ongoing major water conservancy projects, in addition to starting 27 more projects.

China already has 16,000 km of high speed tracks, representing 60% of the world total.

Furthermore, the country will increase effective investment in public services, according to Li.

China has earlier lowered its 2015 growth target to about 7%, as the world's second-largest economy embraces the so-called "new normal" that gives preference to quality over quantity.

The government also lowered the growth target for fixed asset investment to 15% from 17.5% in 2014. The growth targets of foreign trade and retail sales have been lowered by 1.5 percentage points to 6% and 13%, respectively.

Having recorded double-digit growth rates for almost two decades, China's economy has been facing a growth slowdown in recent years. However, China's leadership is seemingly accepting the slow growth rate as they highlight a balanced and sustainable growth model for the economy.