The high-speed rail crash may serve as the moment when the shortcomings of state-driven...
The high-speed rail crash may serve as the moment when the shortcomings of state-driven investment in China were laid bare. The Ministry of Railways took on a debt equivalent to 4.6% of GDP to build the network - money likely never to be recouped. For 2010, fixed investment in China totaled 46% of GDP - it's hard to spend even a fraction of that prudently.
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