The wave of post-Chinese New Year rework is coming as scheduled, but for the 12 provinces and cities of Tianjin, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Guangxi, Chongqing, Guizhou, Yunnan, Gansu, Qinghai and Ningxia, the challenges this year are very different from previous years. At the end of last year, the ** General Office issued an official document that put a big question mark on the New Year's plans of these places.
The official document clearly requires that in addition to projects that ensure basic people's livelihood, no new large-scale infrastructure projects will be allowed to start construction in these places in 2024. In short, ** has given these major infrastructure provinces a "sudden brake".
These 12 provinces and cities named are all the drivers of the infrastructure boom in the past few years, and they are also "big debt-reducing provinces" with heavy debt pressure. The decision is undoubtedly a warning to these places that even the largest infrastructure ambitions must give way until debt risks are effectively controlled.
But the call for a halt is not one-size-fits-all. The policy has carried out detailed classification management of local infrastructure projects. Large-scale, high-investment projects such as expressways, airport reconstruction and expansion, and urban rail transit are expressly prohibited from being built. Municipal infrastructure and shantytown renovation projects, which are closely related to citizens' daily lives, are required to "strictly control new additions". In other words, unless there is a good reason and sufficient financial guarantees, these places should not easily launch new projects.
Such a policy adjustment is undoubtedly a "tight spell" for those places who are accustomed to spending lavishly. The practice of "getting on the bus first and paying the ticket later" and blindly boarding the project in the past will no longer be tolerated.
However, policy is policy, and reality is reality. For these major infrastructure provinces, stopping new projects is only the first step, and how to resolve the huge debts that have accumulated is the real challenge they need to face.
In fact, much of the reason these places are in debt trouble is due to their disorderly expansion of infrastructure projects. In order to pursue short-term economic growth and political performance, some localities have blindly launched large-scale infrastructure projects regardless of their own financial strength. These projects often have huge investments, long payback cycles, and some are even "bottomless".
For example, in some areas of Qinghai Province, in order to pursue rapid development, a large amount of investment has been made in infrastructure, industrial parks and other fields. However, due to unreasonable planning and inability to keep up with supporting facilities and services, these projects eventually became "unfinished buildings" and "empty cities". Not only failed to drive local economic development, but instead put the local government on a heavy debt burden.
Another example is Gansu Province, an underdeveloped region in the west that has been lacking pillar industries. In search of a breakthrough in development, Gansu Province has made massive investments in transport infrastructure over the past few years. However, due to the lack of scientific planning and effective management, these investment projects have not been able to produce the expected economic and social benefits. Instead, they have allowed Gansu province to swell its debt and eventually find it in a difficult situation.
There are many more such examples. It can be said that behind the infrastructure boom, there are many unknown "pits". The reason why these places have jumped into these "pits" is largely because they are driven by short-term impulses for political performance and blind development concepts.
However, there is no such thing as a free lunch. When the scale of debt in these places reaches a certain level, ** has to intervene. Because if left unchecked, these debts could eventually trigger systemic financial risks and even jeopardize the economic security of entire countries.
Therefore, stopping new projects in major infrastructure provinces is actually a necessary corrective measure. It aims to make these places realize that economic development cannot be achieved by blind investment and disorderly expansion; Instead, we should promote high-quality development by optimizing the industrial structure, enhancing innovation capabilities, and improving the business environment.
Of course, stopping new projects does not mean abandoning infrastructure investment altogether. After all, infrastructure development is still important for promoting local economic development and improving people's livelihood and well-being. The key is to grasp the issue of good degree and ensure that the scale of investment matches the local financial strength and economic development needs.
In addition, it will take time and patience to resolve debt in places that are already in debt**. They need to gradually reduce their debt burden by optimizing the structure of fiscal expenditure, revitalizing existing assets, and introducing social capital. At the same time, they also need to strengthen cooperation and exchanges with other regions to jointly explore new development models and paths.
In short, the halt of new projects in major infrastructure provinces is an important policy signal. It reminds us that in the process of economic development, we must adhere to the principles of scientific planning, orderly development, and doing what we can; Long-term risks and challenges cannot be overlooked in pursuit of short-term gains. Only in this way can we achieve truly high-quality development and let the people share the fruits of reform and development.