BY TOM ORLIK IN BEIJING AND LINGLING WEI IN CHONGQING FOR THE WALL STREET JOURNAL
Borrowing Fueled Chongqing’s Infrastructure Projects, Highlighting National Problem of Reliance on Government Spending.
The Chinese city of Chongqing accumulated tens of billions of dollars in liabilities during Bo Xilai’s term as local Communist Party chief, as it juiced growth that helped launch the former high-flyer’s campaign for a top political post.
A Wall Street Journal analysis of Chinese rating-company reports shows that 10 major investment vehicles the city used to fuel its growth accumulated more than 346 billion yuan ($54 billion) in liabilities, as it recapitalized banks and built highways, bridges and other projects that boosted growth and helped attract global companies looking for an entry into China’s booming inland markets. In 2007, … Full Article