Final answer:
Beijing spent $40 billion on projects and initiatives such as the extension of the Grand Canal and the construction of the Forbidden City. The spending was aimed at modernizing and tapping into the global market economy.
Step-by-step explanation:
Beijing spent $40 billion on various projects and initiatives. For example, the money was used to pay for the extension of the Grand Canal to Beijing, the construction of the Forbidden City, and the establishment of special economic zones (SEZs) along the coast to attract international businesses. Furthermore, the spending was aimed at modernizing and tapping into the global market economy, which resulted in increased trade with other countries.