China to display growth playbook at Hangzhou G-20 summit
But its fiscal spending strategy comes with costs of heavier debt and overcapacity
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Beijing
GROUP of 20 leaders meeting in Hangzhou this weekend will encounter a manicured, booming city transformed by billions of dollars in infrastructure investment that includes underground tunnels, new subway lines and a six-lane airport highway.
There is a cost. China's economy is groaning under the weight of a debt bill that now equates to about two and a half times gross domestic product (GDP), and overcapacity has brought waste and disinflation. Yet, such is the global growth funk; visitors may be tempted to cast doubts aside and take a leaf out of the nation's stimulus playbook: build first, fix up the mess later.
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