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.

No Kings Exposes Odd Things!

The “No Kings” protests held around the nation are not grassroots spontaneous people’s protests but are highly organized events by paid provocateurs.

President Trump Needs Much Better Protection

President Trump faces threats from foreign adversaries and domestic radicals prone to violence, people suffering from severe “TDS.”

Science Has Finally Come For Transgenderism

British biologist Richard Dawkins said “trans women are men,” calling transgender ideology a movement that undermines biological truth.

Trump is Coming for Antifa

Liberals say there is no organization called “Antifa”. Conservatives say Antifa is real and we now know how it is funded. What should we believe?

The Pentagon vs. the Free Press (or What’s Left of It)

Reporting what the government would rather not have reported is not just an essential function but a duty of a free press in a representative system.

Cleveland-Cliffs Stock Jumps as It Eyes Rare Earths Production

Cleveland-Cliffs’ $400M Defense Logistics Agency deal and rare earth mining prospects boosted its stock to yearly highs on Oct. 20.

FBI Confirms Hunting Stand Near Trump’s Air Force One: 4 Things to Know

FBI’s deputy director said forensic tools are being used to investigate a hunting stand found overlooking President Trump’s Air Force One in Florida.

Government Shutdown Could End This Week: White House Economist

In an interview, Kevin Hassett stated that a chorus of Senate Democrats thought it would be “bad optics” to reopen the govt before the “No Kings” rallies.

Vehicle Hit With Artillery Shrapnel During Marine Ceremony: California Highway Patrol

Metal shrapnel from a Marine Corps live-fire exercise at Camp Pendleton’s 250th anniversary damaged a CHP vehicle near a major highway, officials said.

President Signs Rare Earth Agreement With Australia’s PM

President Trump hosted Australian PM Albanese at the White House, where both leaders signed a new agreement on rare earth mineral cooperation.

Trump Says Insurrection Act Is ‘Strongest Power a President Has’

President Trump detailed plans to invoke the Insurrection Act to address rampant crime, calling it the “strongest power a president has.”

Army Corps of Engineers to Pause $11 Billion in Projects During Shutdown: Vought

Russ Vought, director of the White House’s OMB, has added to the growing pile of federal projects paused during the government shutdown.

Trump Signs Executive Order Putting New Restrictions on Federal Hiring

Trump signed an executive order directing federal agencies to restrict hiring, with exceptions for immigration, security, and political appointees.
spot_img

Related Articles

Popular Categories

MAGA Business Central