A golden opportunity to convert short to long term debt at low interest rates. Makes China a capital rich country. Was this what Keating was forcing via the superannuation provisions? How many local governments in Australia can borrow at 2%?
Unless this money goes into infrastructure that makes economic sense it will be an opportunity wasted.
Some no doubt goes into the Belt and Road initiative.
Some goes into education.
Some goes into R and D.
Some could go into improving the lot of rural China that is already helped by the rail and road network because it opens up the market.
Cheap transport opens up tourism.
Cheap transport facilitates door to door delivery and people with phones and modes of electronic payment that are free of rake offs, stimulates on line purchasing.
Makes China an economic powerhouse.
With attitude: Open Source tech rather than the subscription model.
Hopefully next an open source provider to displace Microsoft.
What you say makes a lot of sense.
A golden opportunity to convert short to long term debt at low interest rates. Makes China a capital rich country. Was this what Keating was forcing via the superannuation provisions? How many local governments in Australia can borrow at 2%?
Unless this money goes into infrastructure that makes economic sense it will be an opportunity wasted.
Some no doubt goes into the Belt and Road initiative.
Some goes into education.
Some goes into R and D.
Some could go into improving the lot of rural China that is already helped by the rail and road network because it opens up the market.
Cheap transport opens up tourism.
Cheap transport facilitates door to door delivery and people with phones and modes of electronic payment that are free of rake offs, stimulates on line purchasing.
Makes China an economic powerhouse.
With attitude: Open Source tech rather than the subscription model.
Hopefully next an open source provider to displace Microsoft.
Its my suspicion that most of the windfall will be directed toward keeping the plates spinning and buying time.
While it's still a relatively poor outlook in aggregate, reducing debt servicing costs from 4-5% or more to ~2% buys a whole lot of time.
What they really need is a form of spending that drives self sustaining growth, perhaps AI could be that. It seems to be their best shot.