China doubled its investment in major infrastructure projects in the face of downward economic pressure, with total investment exceeding 1 trillion yuan (about $156.8 billion) in early 2022. Given that the country’s infrastructure is close to saturation, such a move might not be effective, a financial source believes.
“Ramping up infrastructure investment is likely difficult to achieve the expected effect of boosting China’s economy,” Albert Song, a senior financial professional focused on China’s political and economic spheres, told The Epoch Times on April 11.
In recent years, China’s local authorities have been building railroads, highways, and airports. However, “many highways have little vehicle flow, airports have very low throughput, and even commercial complexes in some cities have little business or pedestrian traffic, making it difficult to maintain marginal utility,” Song said.
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