The difficulties of financing the development of infrastructure facilities in rural areas in China

Developing infrastructure facilities for rural areas in China has become a key and pressing issue for further developing Chinese economy in the coming future. Data used for the analysis in this study are mainly from the statistics published by authoritative institutes, and the research findings from previous studies. This paper has found three major difficulties in financing the development of rural area infrastructures, including insufficient investment by the government both at central and local level; no participation from farmers in decision-making on implementing infrastructure facilities; and no mechanism of attracting private interests in participating in the development of rural infrastructure facilities. The research results provide important references in the further studies for identifying effective financing approaches for the implementation of rural infrastructure facilities.