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Economy

Construction sites go dark in Mao's debt-laden hometown

Xi warns of 'gray rhinos' as backlash of shadow financing hampers China's economy

The construction site of a bridge in Liuzhou, Guangxi Zhuang Autonomous Region. China's local governments and state-owned enterprises borrowed heavily to build infrastructure, causing debts to balloon. (Photo by Getty/Visual China Group)
The construction site of a bridge in Liuzhou, Guangxi Zhuang Autonomous Region. China's local governments and state-owned enterprises borrowed heavily to build infrastructure, causing debts to balloon. (Photo by Getty/Visual China Group)

BEIJING -- The slowdown in local infrastructure investment represents a major culprit as China's growth sinks to its lowest pace in nearly three decades, and this problem is illustrated nowhere more clearly than in the hometown of Mao Zedong, the father of communist China.

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