The Vast Nature of Construction in China.

20 Feb

Jiaozhou-Bridge

During China’s rise to their world super power status they have always been known for their immense efficiency in production and construction. The infrastructure they have created has been done so in such a small space of time in comparison to other developed nations. Just take high-speed rail as an example.

 

However, since the economic downturn of 2007/08 construction volume has catapulted to new levels.

 

The downturn had a huge effect on the Chinese economy due to a large proportion of their GDP being attributed to export goods. The response from the Government was to encourage lending and to release an economic stimulus programme to the tune of $400 billion in direct investment.

 

As a result “Over the past few years, China has built a new skyscraper every five days, more than 30 airports, metros in 25 cities, the three longest bridges in the world, more than 6,000 miles of high speed railway lines, 26,000 miles of motorway, and both commercial and residential property developments on a mind-boggling scale” (BBC, 2014)

 

This investment has been calculated as 50% of the country’s GDP. The result is that China is now in a huge amount of debt (around 200% of GDP) and the investment isn’t seeing an economic return. Most visibly seen in the lack of use of completed projects. Huge residential developments are left empty, pristine motorways are barely occupied and whole cities have yet to have their lights be turned on.

 

So although China has achieved huge feats of engineering in creating this vast new infrastructure, their economic future may be at risk as a result.

http://www.bbc.co.uk/news/business-26225205

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