Economics

Xi Jinping’s Debt Clampdown Has Left a Trail of Dead Projects

  • As consumption sustains growth, once-prized programs lie idle
  • Western regions, late to the investment spree, may suffer most
Natixis Chief Asia Pacific Economist Alicia Garcia Herrero says U.S. tax reform could complicate things for China.(Source: Bloomberg)
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A pile of rusty pipes and materials are all that remain of Lanzhou New Area’s tram project. Only a year ago it was a flagship public-private partnership for the planned city in Central China, before it fell victim to President Xi Jinping’s debt clampdown.

"The project is dead," said a guard at the office, who gave only his surname, Le. Nearby, the tram tracks are paved over, the mismatched lines of asphalt scarring a six-lane road that leads to a dead end on the edge of one of China’s most ambitious urban developments.