5 ms·

> The Chinese internal market size is four times the size of the US market for consumer goods. And that's apart from the the Chinese rolling in cash reserves th

> The Chinese internal market size is four times the size of the US market for consumer goods. And that's apart from the the Chinese rolling in cash reserves that lets them afford to build lots of infrastructure, just like the US was able to build back in the 1950s and 1960s. I was under the impression that large amounts of the infrastructure projects were debt-financed. Is this not the case?

simonblack 3y ago
Not to the extent that most countries would need to. It's a bit silly in financial/economic terms to have cash just sitting there doing nothing, while you take out a costlier mortgage on something else. Most of the infrastructure debt that you're likely to be thinking of is taken out by other countries who have China constructing the railways, etc, used in making the BRI. China is shelling out plenty of cash for those railways, etc in the near term, while the other countries will pay it off over the longer term.