China’s ‘Silk Road’ project runs into debt jam
This is the China bubble exported starting to wobble. So far, China has relied on their capability to offer leaders of countries with no regard for fiscal sanity to fall for the “have your stuff now, pay much more much later” scheme they have deployed. China’s only motivation has been to find new work for its grossly oversized construction industries. This has fuelled their growth internally but building activity in China is not quite enough anymore to prevent the bubble from collapsing. This has built up since 2008 already so that’s not a new thing. Feeling the consequences of the Ponzi is a new thing though. Question: when the China growth bubble pops, will that mean more oil demand or less? Your turn …
China’s massive and expanding “Belt and Road” trade infrastructure project is running into speed bumps as some countries begin to grumble about being buried under Chinese debt. First announced in 2013 by President Xi Jinping, the initiative also known as the “new Silk Road” envisions the construction of railways, roads and ports across the globe, with Beijing providing billions of dollars in loans to many countries.
