Business
International Relations
Economics
Infrastructure Development
Infrastructure
Urbanization
Mining Industry
1/4
"Global miners see China as a source of stability for future iron ore demand due to increased infrastructure investment this year and the country’s ongoing urbanization drive."
caixinglobal.com
"Global miners see China as a source of stability for future iron ore demand due to increased infrastructure investment this year and the country’s ongoing urbanization drive."
caixinglobal.com
2/4
They see the problems this year as mostly temporary interruptions before China reverts to its old model, with many more years ahead of Chinese urbanization and infrastructure spending.
They see the problems this year as mostly temporary interruptions before China reverts to its old model, with many more years ahead of Chinese urbanization and infrastructure spending.
3/4
This wishful thinking has it almost exactly backwards. China invests 40-45% of its GDP, with roughly 60% of this having gone into property and infrastructure. No other country in history has had such high investment levels for so long.
This wishful thinking has it almost exactly backwards. China invests 40-45% of its GDP, with roughly 60% of this having gone into property and infrastructure. No other country in history has had such high investment levels for so long.
4/4
In the short term China may try to keep these levels up as the economy struggles to adjust to a new model, but Beijing knows it must bring infrastructure and property investment levels sharply down. Over the long term China simply cannot maintain even current levels.
In the short term China may try to keep these levels up as the economy struggles to adjust to a new model, but Beijing knows it must bring infrastructure and property investment levels sharply down. Over the long term China simply cannot maintain even current levels.
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