Be cautious with mega-projects

Any increased investment should flow to emerging and innovative industries instead of those sectors with overcapacity

A photograph of Wang Zhongbing, Zhanjiang's mayor, kissing the newly-inked approval for the city's long-coveted steel project in front of the headquarters of the National Development and Reform Commission has quickly spread across China and become a heated topic of debate.

"I am so excited at this moment," Wang said when China's top economic planner approved Zhanjiang's request to build a mega-steel project in the port city in Guangdong province on May 25. When completed, the steel plant is expected to have an annual output of 10 million tons, providing a big boost to local employment and GDP growth.