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Policymakers prioritized debt repayment over infrastructure growth in 2025

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Infrastructure investment fell 2.2% in 2025, marking the first contraction in over a decade. Here’s why: First, local governments ramped up debt repayment, crowding out funding for infrastructure.

In 2025, local governments issued RMB 1.4 trillion of SPBs to fund repayment of government arrears and...



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