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Chapter 7 discusses China’s infrastructure development.It analyzes the ways in which infrastructure investment has been financed, including revenues from land sales, bank loans, infrastructure development funds, domestic and foreign debt, taxes, fees, and user charges. It shows the composition of funds for financing key infrastructures including transportation, telecommunication, energy, and sanitation. It demonstrates that China's infrastructures have grown rapidly in the past twenty-five years. It examines the reasons for the fast infrastructure development in China and the problems with infrastructure development, including a solid tax system, a pro-infrastructure spending system, expansionary fiscal policies, and large local government revenues from land sales and bank borrowings. It also evaluates China’s belt and road initiative and discusses the L17benefits and potential risks to the countries involved.
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