China’s local-debt crisis is about to get nasty

Contact Your Elected Officials
The Economist

Worries from a far-flung province” Guiyang City, Guizhou Province, China

Locals in guiyang have a keen sense of the distance between them and everywhere else. Over cold rice noodles bathed in chilli paste and vinegar, an elderly resident of the city in south-west China lists a number of recent economic achievements of his home town—namely, the shortening of travel times to other places. Chengdu, a megacity in nearby Sichuan, is now just three hours away by high-speed rail. Chongqing, another metropolis, can be reached in just over two. China’s Herculean construction of uber-fast trainlines has even brought Hong Kong, the southern financial centre, within a seven-hour ride. These travel times are rattled off with considerable pride. Not long ago they would have taken three to four times as long.

Yet this progress has been costly, and is proving to be unsustainable. Over the past decade Guizhou, the region in which Guiyang sits, has accrued enormous debts through its building efforts—ones which it can no longer repay. Many of the region’s roads and bridges went untravelled over the past three years as covid-19 stopped people moving about. A local bridge-builder was recently forced to extend maturities on its bonds by up to 20 years. The region is also known for its shantytowns. Guiyang is scattered with skyscrapers and green hills poking out from between them, as well as old, crumbling buildings. The government has spent well beyond its means in renovating such dilapidated residences. One shanty renovation in Guiyang, called Huaguoyuan, is among the world’s largest housing projects. The property developer has already defaulted.

Guizhou is a far-off region to many Chinese people in wealthy eastern areas. But its debt problems will set the tone for the rest of the country in the coming months. The province will probably be the first to receive a central-government bail-out. Indeed, local officials are already asking for help. On April 11th a government think-tank based in Guiyang said that the province does not have the ability to resolve its debts by itself and was seeking advice from the central government.

Read Full Article From The Economist

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

Florida Surgeon General Nukes ALL School Vaxx Mandates, Likens Them to Slavery

Florida will no longer be permitted to force-feed pharmaceutical products to children, against the objections of parents, as a prerequisite for attending publicly-run educational institutions.

Understanding the freedom of speech difficulty UK ?

Freedom of speech in the UK, shaped by evolving laws, faces legal conflicts—highlighted by Nigel Farage’s recent U.S. Congress testimony.

US Supreme Court Asked to Rule on Whether Private Citizens Can Enforce Voting Rights Act

A lower court ruled earlier this year that only...

Judicial activism has run amok

Judge Charles Breyer blocked Trump's use of California's National Guard, citing the Posse Comitatus Act, sparking debate over presidential authority.

The SCO & BRICS Play Complementary Roles In Gradually Transforming Global Governance

SCO and BRICS will gradually shape global governance, not abruptly, due to diverse members and non-binding decisions slowing consensus.

Democrats Highlight August Organizing, Say They Want Bipartisan Deal to Avert Shutdown

Rep Hakeem Jeffries said during recess Democrats organized across the country and will seek a bipartisan spending bill as Congress with Sept. 30 deadline.

Judge Reverses Trump Admin’s Harvard Funding Freeze

Federal judge blocked Trump admin’s bid to freeze $2B in Harvard funding, ruling it violated the First Amendment in its anti-Semitism efforts.

Putin, Xi Hot Mic Moment on Organ Transplants Underscores Concerns Over Organ Harvesting in China

On Sept. 3, a hot mic caught China and Russia’s leaders discussing about organ transplants and living to 150 as they walked side by side.

Pfizer CEO Says Trump Should Receive Nobel Prize for Operation Warp Speed

Pfizer’s CEO praised President Trump, saying he deserves a Nobel Peace Prize for Operation Warp Speed that sped COVID-19 vaccine delivery.

Trump to Host Poland’s New President Nawrocki at the White House

President Donald Trump will host Poland’s newly elected president, Karol Nawrocki, at the White House on Sept. 3.

Trump Announces Space Command Moving to Alabama

“I am thrilled to report that the U.S. Space Command headquarters will move to beautiful Huntsville, Alabama,” President Trump said.

Trump Takes Aim at Crime in Chicago After Dozens Shot Over Weekend

President Trump said that he will “soon” take actions to deal with crime in Chicago, weeks after he sent National Guard troops to Washington, D.C.

Trump Says India Offered Zero Tariffs After Decades of ‘One-Sided’ Trade

President Trump said India offered to cut tariffs on U.S. goods to zero, calling it a long-overdue fix for decades of one-sided trade.
spot_img

Related Articles

Popular Categories

MAGA Business Central