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China’s cities are buried in debt, but they keep shoveling it on

China’s cities are buried in debt, but they keep shoveling it on
In 2015, when Shangqiu, a municipality in central China about the size of Kentucky, laid out a plan for the next two decades, it positioned itself as a transportation hub with a sprawling network of railways, highways and river shipping routes

By the end of 2020, Shangqiu had built 114 miles (183km) of high-speed rail, and today several national railways make stops in the city

By 2025, Shangqiu expects the coverage of its highway network to have increased by 87 per cent. The city is building its first two airports, three new highways and enough parking space for 20,000 additional slots

The infrastructure splurge is far from over. On Feb 23, the Shangqiu Communist Party secretary reiterated the city’s vision as a logistics power when celebrating a new partnership with a state-owned investment firm, which could help Shangqiu borrow money for even more projects

That morning, the city’s bus operator announced that it would have to suspend services because of financial difficulties. The pandemic had hit it hard, the company said, and the Shangqiu government hadn’t provided subsidies that it had promised

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