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China’s Great Infrastructure Binge, in Charts

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But is all this investment worth it?

DAVID M. BARREDA AND DAVID WERTIME

AUG 12 2013, 3:38 PM ET

China leads the world in infrastructure investment. New roads, new railroads, new skyscrapers, even whole new cities seem to spring into existence every day leave little doubt that investment has been ambitious. But has it been wise? This infographic and the statement that preceds it, were created by Youyou Zhou for CNPolitics and translated here by Tea Leaf Nation’s David Wertime.

The Chinese government has put a great deal of resources into infrastructure investment. Major investments were made in rail, highway, and other infrastructure projects during the 2008 global financial crisis. However, with the expanding risks of local debt, how efficient has Chinese infrastructure investment been? How much has it contributed to economic growth? What financial risks has it entailed?

The Shanghai Institute for Finance and Law has conducted a series of studies on urbanization and the risks of local debt. Assistant researcher Huang Shaoqing of Antai College of Economics and Management at Shanghai Jiaotong University has pursued the subtopic Infrastructure Investment: Funding Sources, Investment Efficiency and Local Finance Risks in an effort to answer the above questions. The graphics below shows some of his findings.

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For the Charts, see The Atlantic: http://www.theatlantic.com/china/archive/2013/08/chinas-great-infrastructure-binge-in-charts/278597/

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This entry was posted on August 12, 2013 by in News Articles and tagged , , , , , , , .
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