This “news” is a couple of months old, but Caixin Weekly, a Chinese business magazine, has published an extremely critical article about that country’s high-speed rail program. This report probably inspired similar but shorter articles in the Washington Post, Wall Street Journal, and other publications.
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One theory is that China will continue to waste money on things like high-speed rail in order to persuade the U.S. to bankrupt itself trying to keep up. If the U.S. doesn’t fall for it–and it appears it has not–then China will have to stop building or end up contributing to its own bankruptcy. That’s not so hard to believe considering that Japanese National Railways piled up a $300 billion debt (in today’s dollars) in 1987, which the government was forced to assume and which contributed to that nation’s economic doldrums since 1990.
