China is tapping the brakes on some subway expansions, including in certain affluent cities, a decision analysts said reflects a shift from the debt-fuelled infrastructure boom of the past to a new era of fiscal discipline and investment efficiency.
Rich eastern hubs such as Ningbo and Suzhou are among those facing regulatory roadblocks in securing Beijing’s approval for new lines as policymakers scrutinise loss-making projects.
In an online response to public inquiries, the Ningbo Municipal Development and Reform Commission said this month that the city’s ridership metrics “need further improvement” and currently fall short of the conditions required for submission to the country’s top economic planner for approval.
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The local commission noted that Beijing had issued stricter standards and was requiring previously approved but unbuilt projects to be resubmitted for vetting.
“Since subway operations in most Chinese cities are loss-making and require subsidies, the fact that their funding sources are now extremely limited means the government has to tighten up,” said Zhao Jian, director of the China Urbanisation Research Centre at Beijing Jiaotong University.
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This stricter oversight, once more common among smaller or less-developed cities, has been extended to economic powerhouses. Suzhou, located in Jiangsu province, west of Shanghai, has a population of nearly 13 million and boasts one of the nation’s highest gross domestic products.