Fast-growing China provinces can't quit investment addiction

Beijing

WHEN it comes to China's economy, investment is still king.

In the five fastest-growing provinces, total fixed-asset investment exceeded the sum of their gross domestic product in the first three quarters of this year, according to new data from 29 of 31 provincial governments. In Chongqing, Guizhou, Tianjin, Jiangxi and Anhui, combined total investment was 6.56 trillion yuan (S$1.3 trillion) versus their combined economic output of 6.37 trillion yuan, the data show.

Despite a transition towards services and consumer-led growth, investment by the government, developers, or companies is still the engine fuelling the fastest expansion rates. While the economy looks resilient for now…