The infrastructure gap: China builds, America debates

Overview

China just front-loaded $42 billion in infrastructure spending for early 2026—281 projects approved before the calendar even flipped. New airports, cross-sea ferries, reservoirs, and power grids are breaking ground now. Meanwhile, the U.S. Infrastructure Investment and Jobs Act, passed with $1.2 trillion in 2021, has spent just 21% of its funds as of December 2024. The law expires September 2026, and Trump's May 2025 budget proposal seeks to cancel $15.2 billion in unobligated IIJA funding for renewable energy and clean tech. China builds 50,000 kilometers of high-speed rail in 17 years. America debates one line in California.

In This Story

3 Videos

4 People

China Dominates Infrastructure, U.S. Loses Competitive Edge

3 Context

U.S. Interstate Highway System (1956-1992)

Key Indicators

$42B

China's front-loaded 2026 infrastructure investment

295 billion yuan approved before January, jumpstarting 281 major projects

21%

U.S. infrastructure funds actually spent

Only $119.4B of $580.6B outlaid from IIJA by December 2024

$15.2B

IIJA funding Trump proposes to cancel

May 2025 budget targets unobligated renewable energy and clean tech funds

50,000 km

China's high-speed rail network

Built in 17 years. U.S. has essentially zero HSR miles operational.

260 GW

China's renewable additions in 2024

190 GW solar + 60 GW wind in one year. Entire U.S. solar capacity: 178 GW.

Sept 2026

IIJA funding expiration date

Five-year authorization ends; Congress must pass new surface transportation bill

Interactive

Exploring all sides of a story is often best achieved with Play.

Ever wondered what historical figures would say about today's headlines?

Debate Arena

Two rounds, two personas, one winner. You set the crossfire.

People Involved

Xi Jinping

President of China / General Secretary of the CCP (Directing China's 15th Five-Year Plan infrastructure push (2026-2030))

Joe Biden

U.S. President (2021-2025) (Signed IIJA into law; left office with 47% of funds obligated, 21% spent)

Donald Trump

U.S. President (2025-present) (Paused portions of IIJA funding via executive order on first day in office)

Pete Buttigieg

U.S. Transportation Secretary (2021-2025) (Oversaw IIJA implementation; left office with mixed results)

Organizations Involved

National Development and Reform Commission (NDRC)

Chinese Government Agency

Status: Approved $42B in early 2026 infrastructure projects

China's economic command center, controlling what gets built and when.

U.S. Department of Transportation

Federal Agency

Status: Administering final year of IIJA funding before September 2026 expiration; facing proposed $15.2B cuts

America's infrastructure funding gatekeeper, moving slower than stakeholders hoped.

Timeline

China Front-Loads $42B Infrastructure Investment
Implementation

Projects begin rolling out: Guangzhou airport, cross-sea ferries, reservoirs, power infrastructure.
January 5th, 2026
China Releases Early 2026 Infrastructure Investment Plan
Announcement

NDRC approves 295 billion yuan for 281 major projects plus 673 green initiatives.
December 30th, 2025
Guangzhou New Airport Construction Begins
Implementation

Preliminary construction starts on Pearl River Delta Hub Airport after State Council approval. Designed for 30M passengers by 2035, opening targeted for 2028.
December 25th, 2025
China Adopts 15th Five-Year Plan
Policy

Plan for 2026-2030 prioritizes modernized infrastructure system and industrial upgrading.
October 23rd, 2025
Trump Proposes $15.2B in IIJA Funding Cuts
Policy

FY 2026 budget proposal calls for canceling $15.2B in unobligated IIJA funds for renewable energy, carbon capture, EVs, and batteries. Also slashes DOE budget by $19.3B overall.
May 2nd, 2025
Trump Pauses IIJA Funding via Executive Order
Policy

New president freezes portions of infrastructure spending, particularly EV charging projects.
January 20th, 2025
China Completes Most 14th Five-Year Plan Infrastructure Goals
Milestone

Six of 17 major transport targets completed ahead of schedule. Railway mileage reaches 162,000 km.
December 31st, 2024
U.S. Infrastructure Law: Only 21% of Funds Spent
Status Update

GAO reports $119.4B outlaid of $580.6B available—47% obligated but slow disbursement continues.
December 31st, 2024
IIJA Midpoint: $454B Allocated to 56,000 Projects
Milestone

Biden administration announces halfway progress but only 38% of total funds allocated.
May 1st, 2024
Biden Signs Infrastructure Investment and Jobs Act
Legislation

U.S. passes $1.2 trillion infrastructure law, largest investment in decades.
November 15th, 2021
China's 14th Five-Year Plan Approved
Policy

Plan sets aggressive infrastructure targets for 2021-2025, including HSR and renewable expansion.
March 11th, 2021
Xi Launches Belt and Road Initiative
Policy

China announces BRI during Xi's Kazakhstan visit, launching history's second-largest infrastructure program.
September 7th, 2013

Scenarios

China Dominates Infrastructure, U.S. Loses Competitive Edge

Discussed by: World Bank analysis, MIT Technology Review, Council on Foreign Relations

China continues building at current pace while U.S. permitting delays and political gridlock persist. By 2030, China operates 75,000 km of high-speed rail while California's line remains incomplete. Chinese construction companies secure global contracts based on speed and cost advantages. U.S. cities fall further behind in transit, renewable energy infrastructure, and grid modernization. The gap becomes self-reinforcing: Chinese firms gain expertise through constant building while American capacity atrophies from disuse. Developing nations choose Chinese infrastructure partners over American alternatives that take twice as long and cost more.

U.S. Permitting Reform Unlocks Faster Construction

Discussed by: Bipartisan Policy Center, House Transportation Committee analyses

Bipartisan permitting reform passes in 2026-2027, streamlining NEPA reviews and reducing litigation delays. Environmental reviews compressed from 2-4 years to 12-18 months. State and local governments adopt parallel reforms. Construction costs drop as projects move faster, reducing inflation impact. IIJA's remaining funds deploy more efficiently. High-speed rail breaks ground in multiple corridors. The U.S. doesn't catch China but narrows the gap, demonstrating democratic systems can build at competitive speeds when political will exists. Reforms could accelerate renewable energy deployment and transmission infrastructure.

China's Debt Crisis Slows Infrastructure Boom

Discussed by: Bloomberg Economics, Rhodium Group, South China Morning Post

China's high-speed rail system carries $839 billion in debt as of 2023. Local government financing vehicles buckle under infrastructure obligations. A financial crisis forces Beijing to slash infrastructure spending in 2027-2028. Projects halt mid-construction. The quality-versus-quantity debate intensifies as rushed projects require expensive repairs. China's infrastructure advantage proves unsustainable without financial restructuring. This creates an opening for U.S. infrastructure if American can capitalize—but only if permitting and political challenges are resolved. Without reforms, both powers could stall, leaving the infrastructure race without a winner.

Divergent Models: China Physical, U.S. Digital

Discussed by: McKinsey Global Institute, Brookings Institution

The competition evolves into different domains. China continues dominating physical infrastructure—rails, roads, ports, power grids. The U.S. refocuses on digital infrastructure, AI computing clusters, advanced semiconductor fabs, satellite networks, and cybersecurity systems. Neither side "wins" because they're building different futures. China moves goods and people faster; America processes information and innovates faster. The question becomes which infrastructure matters more in a 21st-century economy. Developing nations face a choice: partner with China for physical connectivity or America for digital integration.

IIJA Expires Without Replacement, Infrastructure Funding Collapses

Discussed by: Bond Buyer analysis, transportation industry groups, Brookings Institution

Congress fails to pass new surface transportation bill before September 2026 IIJA expiration. Trump administration successfully cancels $15.2 billion in unobligated clean energy funds. The remaining $294 billion in competitive grants gets frozen or redirected. State and local governments halt projects mid-construction as federal funding disappears. U.S. infrastructure investment drops to pre-2021 levels while China continues its 15th Five-Year Plan buildout. The gap becomes irreversible—China completes its 2026-2030 infrastructure targets while America's brief infrastructure renaissance ends after just five years.

Historical Context

U.S. Interstate Highway System (1956-1992)

1956-1992

What Happened

President Eisenhower launched America's largest infrastructure program, building 80,000 kilometers of highways over 35 years at a cost of $144 billion ($558 billion inflation-adjusted). Inspired by Germany's autobahn, the Interstate connected the nation, enabled suburban growth, and projected American power. The first half was completed in 14 years; the second half took 20 years as political will faded and costs escalated.

Outcome

Short Term

Transformed American mobility, commerce, and development patterns within a generation.

Long Term

Created car-dependent culture, enabled economic expansion, but also hollowed urban cores and increased oil dependence.

Why It's Relevant Today

China's infrastructure push mirrors America's Interstate era—but compressed into 15 years instead of 35, and running parallel with high-speed rail and renewable energy. The U.S. did this once. Can it still?

Soviet Union Infrastructure Competition (1950s-1980s)

1950s-1980s

What Happened

During the Cold War, the U.S. and Soviet Union competed on infrastructure as a demonstration of systemic superiority. The Soviets built massive projects quickly—metros, dams, industrial complexes—but quality and maintenance suffered. American projects took longer with more bureaucracy but lasted. The Soviets excelled at showcase projects; Americans built enduring systems. The USSR's infrastructure investment couldn't prevent economic stagnation.

Outcome

Short Term

Both superpowers modernized rapidly, with USSR initially appearing competitive or ahead.

Long Term

Soviet infrastructure aged poorly; deferred maintenance and economic inefficiency contributed to collapse by 1991.

Why It's Relevant Today

Echoes today's China-U.S. competition. Speed and scale impress, but sustainability and financial viability matter long-term. China's $839B rail debt raises Soviet-style questions.

Japan's Bullet Train Launch (1964)

1959-1964

What Happened

Japan inaugurated the Tōkaidō Shinkansen in 1964, the world's first high-speed rail line, connecting Tokyo and Osaka. Built in five years for the Olympics, it symbolized Japan's postwar recovery and technological prowess. The bullet train became a national icon and export product, demonstrating rail could compete with air travel.

Outcome

Short Term

Transformed Japanese transportation, proved high-speed rail viability, boosted national pride.

Long Term

Japan built 3,000 km of Shinkansen over 60 years. China built 50,000 km in 17 years—16x Japan's network.

Why It's Relevant Today

China took Japan's model and scaled it astronomically. The U.S. watched Japan succeed in the 1960s, then China in the 2000s, and still hasn't built a single high-speed rail line.