China's Urbanization Going Astray

| |

Local governments find themselves increasingly tormented by the question: How do we populate the new zones? That question is rather challenging because the infrastructure for many, if not most, of the new urban zones has been constructed using loans from State-owned banks.

New buildings in Huaxian county, Henan province. Urbanization will play an active role in keeping the country's investment and growth stable. Wang Zirui / For China Daily According to the latest official data, the number of new urban zones constructed and planned by local governments exceeded 3,500 by the end of May. That is almost two…