Nation weaning itself off export model faces range of challenges

Editor's Note: Listed State-owned enterprises are sending out profit warnings. Small private firms are begging for government rescues. Growth forecasts are being lowered. The Shanghai Stock Exchange index is falling. It's hard to say there's nothing wrong with the Chinese economy these days, even though it is still leading most other major economies in speed of growth.

But why? Why is the central government, which holds perhaps the world's largest amount of cash, so reluctant to spend its money on building new industrial parks and new cities?

Why, despite their announced ambitions, have local governments perhaps not got as much credit as they had hoped for in their capital investment plans?