1/4
Given how good Chinese infrastructure is, and how much it has over-invested in infrastructure in the past 5-10 years, it might at first seem surprising that fixed-asset investment in the transport sector nonetheless grew by 9.8% year on year in...
xinhuanet.com/english/2020-1…
Given how good Chinese infrastructure is, and how much it has over-invested in infrastructure in the past 5-10 years, it might at first seem surprising that fixed-asset investment in the transport sector nonetheless grew by 9.8% year on year in...
xinhuanet.com/english/2020-1…
2/4
the first three quarters of 2020, but infrastructure spending in China is less about increasing economic efficiency and more about generating economic activity and subsidizing manufacturing. In that case the resulting increase in debt will have exceeded the...
the first three quarters of 2020, but infrastructure spending in China is less about increasing economic efficiency and more about generating economic activity and subsidizing manufacturing. In that case the resulting increase in debt will have exceeded the...
3/4
resulting increase in the country's ability to produce goods and services.
Or to put it differently, debt will have risen faster than real debt-servicing capacity, which means that ultimately the debt must be serviced through real transfers from some sector of the economy.
resulting increase in the country's ability to produce goods and services.
Or to put it differently, debt will have risen faster than real debt-servicing capacity, which means that ultimately the debt must be serviced through real transfers from some sector of the economy.
4/4
The key to China's eventual adjustment will be the political decision about which sector will ultimately be forced to absorb that cost. Ideally the cost should be directly or indirectly allocated to local governments and elites, but this won't be easy politically.
The key to China's eventual adjustment will be the political decision about which sector will ultimately be forced to absorb that cost. Ideally the cost should be directly or indirectly allocated to local governments and elites, but this won't be easy politically.
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