Posted 12/10/2023, 10:00:26 PM
China Faces Infrastructure Investment Dilemma: Should Stimulus Continue Despite Debt Concerns and Unused Projects?
- China facing questions over who should pay for infrastructure investments like upgrading water systems, given high debt levels
- Past stimulus spending on infrastructure drove local debt higher, resulted in unused roads, airports, etc.
- Some argue China should transition to consumption-led growth model, boost social safety net
- But others say investment still needed to support economy in short term
- Investments should focus on enhancing livelihoods (water, hospitals) rather than projects just for the sake of GDP growth