How the Chinese Regions Fell into Debt, and What that Means for Russia

... recentralized by introduction of strict control over regional budgets and projects. However, centralized control of such a large and often corrupt system would be a major challenge, and might reduce motivation to work in the regions. For Russia this debt crisis means one thing: it is not worth it to rely on local governments near the Russian border to attract “magical” Chinese investment. The plans and programs for international cooperation presented by regional officials should not fool anyone,...