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China must put the 'private' into PPP

Beijing can use borrowing crackdown to overhaul key infrastructure financing tool

| China
Beijing should establish clear standards for evaluating public-private partnership projects and make them genuinely open to private companies.

Public-private partnerships are not trendy in China anymore.

The authorities in recent months have canceled about 2,500 PPPs, worth around 2.39 trillion yuan ($376 billion) in aggregate, after Beijing concluded that local governments were abusing the infrastructure financing arrangement to circumvent controls on their borrowing, adding to a worrisome growth in public debt. The halted projects represent about 18% of those in the official pipeline.

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