ExplainerChina mega projects: 6 controversial infrastructure plans for the world’s No 2 economy

From underwater railway tunnels to diverting water from rivers, China has a host of mega infrastructure projects in planning or under construction

Beijing has traditionally used infrastructure spending to prop up the economy, but critics say credit-fuelled investment could lead to unsustainable debt

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A section of the Chengdu-Ya’an railway in southwest China’s Sichuan province. Photo: Xinhua

Published: 8:15pm, 30 Jan 2022

China is increasingly turning to state-led investment to stabilise its economy, hoping mega infrastructure projects will stimulate local business and create jobs.

In late December, China’s finance ministry said it had offered local governments an early allocation of 1.46 trillion yuan (US$229 billion) in quotas for 2022 special-purpose bonds to help spur investment and support the economy.

A total of 102 mega-projects were also included in Beijing’s 2021-25 development plan, some of which will be “front loaded”.

However, infrastructure spending is viewed with scepticism in some quarters, with critics saying credit-fuelled investment could saddle the country with unsustainable levels of local debt.

We take a look at six mega projects that have stoked excitement – and controversy – in China.

1. Sichuan-Tibet railway

The Sichuan-Tibet railway is the second rail link between Tibet and hinterland provinces after a connection with Qinghai was launched in 2006.

Connecting Chengdu, the capital of Sichuan province, and Lhasa, the capital of Tibet autonomous region, the project could reduce travel time from 36 hours to 13 hours.