China’s Addiction to Unproductive Infrastructure

China’s impressive infrastructure projects have been the subjects of both international praise and criticism. A recent New York Times article about the debt-ridden Chishi Bridge seems to have rekindled longstanding concerns about the future of China’s economy. The country’s infrastructure feats are often afflicted with corruption, debt, and poor construction. The collapse of a $12 million Chinese-built bridge in Kenya and the “straddling bus” investment scam this week are just two recent examples. Other varieties of China’s infrastructure resource misallocations include China’s modern ghost towns and unused airports and factories. Two major causes of China’s inefficient infrastructure investments are...

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