China News

Stalled Project Shows Why China's Economy Is Wobbling

The $91 Billion Caofeidian Industrial Zone Is Mired in Debt and Unfulfilled Promise

Updated July 24, 2013 10:59 p.m. ET

CAOFEIDIAN, China—A $91 billion industrial project here, mired in debt and unfulfilled promise, suggests part of the reason why China's economy is wobbling – and why it will be hard to turn around.

The steel mill at the heart of Caofeidian, which is outside the city of Tangshan, about 225 kilometers (140 miles) southeast of Beijing, is losing money.

Nearby, an office park planned to be finished in 2010 is a mass of steel...

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