However, as China enters the middle stage of industrialization, the demand for this kind of infrastructure is bound to decline gradually. The original coal production capacity was established under extremely optimistic expectations, and overcapacity is inevitable. Unfortunately, however, the financial crisis in 2008 caused the domestic economy to decline. In order to prevent political crisis, the central government was forced to use 4 trillion yuan of extreme investment to stimulate the economy. All these 4 trillion yuan are concentrated in the fixed assets investment industry, which makes the already excess coal production capacity further irrational expansion.
However, after all, China has entered the middle stage of industrialization. When the demand for infrastructure is basically saturated, large-scale investment in fixed assets will only lead to high inflation, aggravate the polarization between the rich and the poor, intensify various social contradictions, and even lead to social unrest. This is also the reason why the same railway construction in 2008 is not as good as that after the Asian financial crisis in 1997.
Therefore, the wise government must reduce the investment in fixed assets after the financial crisis, find ways to change the economic structure through institutional changes, find new economic growth points, and gradually digest the negative impact brought by 4 trillion. You have felt this from some practices of this government. The contradiction between shrinking investment in fixed assets and expanding coal production capacity is the depression of the coal industry you see. Those flattering media brag all day about how wise this government is. What is wise? If you don't do this, you will die. Ha ha. Whether China's economy can continue its miracle in the future depends on the depth of system reform.
The problem is more complicated, so I can only say it briefly for your reference.