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2011-11-15

Introducation:China'sbooming economy has been showing signs of slowing down in recentmonths. Some economists say this is linked in part torising levels of localgovernment debt, which is the result of aggressive spending for projectslike new airports, business districts or high-speed railways. Theseventures have helped Chinamodernize and prepare for future growth, but are financed through borrowingand complex accounting techniques that hide the true size of the debt.Is China's spending on huge publicworks a worthwhile investment, or does the accumulating debt pose a threat tothe Chinese economy?


这是一个在中国居住的外国网友的评论:
"However, Chinese reform and rebalancing could bring another 20 years of consumption-led growth, a marvelous boon to the world economy."

I also agree that China could better invest in its future.

I've lived in China for the past four years and have seen countless public works projects in my short time in the country. Shenzhen, the city I'm working in now, has been preparing endlessly for a minor international sports competition that will take place there (the Universiade). Before the competition begins in August, roads will have been constructed, numerous buildings will have been demolished, and four completely new subway lines will have been built.

In four years, this same process has occurred in Beijing (Olympics), Guangzhou (Asian Games), Shanghai (International Expo), and several other cities. The amount of money the government is spending on these projects must be in the hundreds of billions of dollars. But in the end what will the country be left with when the dust settles? Surely, some of the infrastructure will make life more convenient for those living in cities. But with a rapidly growing divide between rich and poor, there seems to be more important things to worry about then traffic jams.

Your thoughtful response provides a helpful answer to what the country’s future would look like if it continues on this short-sighted spending spree.
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2011-11-15 12:22:07
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