Passage 1
China's cautious approach to foreign borrowing is to be maintained, at least for the time being. The debt problems confronting a number of developing countries have reinforced China's determination to introduce foreign technology by means of direct investment and concessionary finance rather than by raising substantial sums of money on the international capital markets. Foreign investment is advantageous insofar as it facilitates the transfer of technology and skills and avoic creating an overhang of debt. The authorities do not consider it appropriate to incur large amounts of extemal debt until a number of practical bottlenecks in the economy, such as an inadequate transport network and energy constraints, have been tackled. China's access to substantial sums of money from the World Bank also reduces the need to borrow on commercial terms.
Why did China refuse to borrow more until their transport capacity and energy supply have further increased?
China's financial borrowing is for industrializatio and modernization. Without well-developed transport network and enough energy supply, however, industry and the entire economy could not be further expanded successfully. Therefore it's no time for borrowing them then, which could not be effectively used and result only in heavy interest payment.
