The model in which the government cooperates with private enterprises to complete a certain project (referred to as PPP) can enable the government to obtain funds, and also allow social capital to enter the fields of public utilities such as electricity and railways. The problem in this model is that the government defaults or the investors default and cause economic losses to the other party. In previous PPP projects, government default was not a small probability event. Although local government defaults are not uncommon, investors are still actively investing in PPP projects.
The statement 'In order to prevent the economic losses caused by the default of local governments, investors try to transfer other interests to their own enterprises' best explains the above seemingly contradictory phenomenon.