Economics
China’s Provinces Struggle to Find Good Projects to Spend On
- More than 1 trillion yuan of special bond quota still unused
- Local governments face tighter controls over spending
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China’s local governments are struggling to find good infrastructure projects to invest in this year, meaning there’s less spending to support the economy just as growth is slowing.
Tighter controls over how local governments spend their money has resulted in a dearth of good investments, with cities and provinces slowing down their borrowing this year.