Quote Originally Posted by Dayuhan View Post
PS: What people often fail to realize about these projects is that they form an effective way of moving money from the Chinese exchequer to Chinese companies, and often to favored individuals as well. The government pays Chinese construction companies to do the work. Subcontractors are involved. Lots of payments made, lots of convenient opportunities for some of that $400 million to wander away. If a project doesn't seem to make economic sense (not saying this one doesn't, but on a general level) and money still flies into it, there's a good chance that the project is largely intended to get money moving around so that some of it can be diverted. Corruption is very widespread in China and the amounts involved are large.
Good point.