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looking beyond borders

foreign policy and global economy

Archive for the tag “local governments”

‘China’s Manhattan’ Borrowed Heavily. The People Have Yet To Arrive.

Chinese local governments are swimming in debt. By official accounts, that debt totals $4.5 trillion. By unofficial estimates, it could be as large as $10 trillion…China has long borrowed heavily to build and then counted on breakneck economic growth to pay it back. The script: Sell vast amounts of land to developers, borrow to subsidise construction, and jobs and new cities will result. It was a model that helped China build its skyscrapers and high-speed rail lines and ushered in an era of prosperity.

Read Here – The New York Times

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