China has wasted US$6.8 trillion in investment since 2009, The Financial Times reported, citing government researchers. In 2009 and 2013 alone, “ineffective investment” came to nearly half the total invested in the Chinese economy in those years, according to research by Xu Ce of the National Development and Reform Commission and Wang Yuan of the Academy of Macroeconomic Research. The bulk of wasted investment went directly into industries such as steel and automobile production that received the most support after the 2008 financial crisis, according to the report. The researchers said ultra-loose monetary policy, little or no oversight over government investment plans and distorted incentive structures for officials were largely to blame for the waste.
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