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Wednesday, 12 June 2013

Across China, the Itch to Spend Is Strong

BEIJING—As leaders in Beijing remain cautious about stimulating China’s economy out of a slowdown, local governments are taking no chances, pushing ambitious spending projects that add to concerns about wasteful capital investment and rising debts.


It isn’t clear how many of these undertakings—which include everything from highways to subways—will end up with funding. But the push illustrates Beijing’s challenge as it attempts to rebalance the world’s No. 2 economy to make it less dependent on such massive investment plans.


A total of 16 provinces and two municipalities representing more than 60% of China’s gross domestic product have issued statements since the start of the second quarter proclaiming the importance of investment projects in driving growth and urging lower levels of government to use all means to accelerate plans in the months ahead.


Read Full Article HERE






Yajun Zhang, The Wall Street Journal via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/Fois_OaYxAo/

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