a lesson in capitalism brought to you by communist china: it doesn't matter if someone uses anything as long as you can sell it and make money
And that's just what happened. Some local officials and local construction businesses made money and then sold the stuff with a profit to some other companies and that's enough to consider the whole thing a "success" here. Now if people actually want to live there is an entirely different matter for the Chinese...
edit: keep in mind they have a bubble developing here and everyone thinks that buying an apartment at any time, even if you don't live in it or don't rent it out, is a good investment. After all, prices have just gone up ever since they embraced free enterprise...
jeeze... the ambient track in the background makes it seem like everyone died there.
I really think this sort of expenditure would be better put making expensive, ridiculous tourist attractions in Shanghai or Beijing or something..
science r&d? I mean really....
not sure why you would build something that depends on economic sustainability to even exist in the first place. There's no blood going into these sort of cities. Not sure what they were thinking...
The government has excess cash to spend. Instead giving it to Beijing, it goes to local builders (who are probably owned by the local government anyway).
Then they sell this to some investors who think they may be THE big deal -> more profit!
If it's not a big deal, then someone makes more money by tearing it down again and selling the scrap metal... welcome to China...it all makes sense here where western concepts as sustainability don't apply. It's all about short term profit
What's funny is that they actually followed through on this insane plan and built the city instead of channeling the money around some other ways (like we do it in the west ). Then again with the city built you can scam some investors too and make even more cash on the way... It's not like suing will get you very far in China when the government itself is involved in a scam. Then again a lot of people here will probably think it's a good investment. Chinese have been telling me how buying land in the boonies is a great idea because MAYBE in the future the next megalopolis will be built there and then: profit!
Added benefit: the local politicians can pat their back for providing jobs...everyone wins *cough*
not sure if foreigners can buy property here easily... although here's the fun stuff: being in a communist state you're not buying property here. You're merely buying the usage rights for 99 years (with the option for an extension) because everything belongs to the state. De-facto you're buying it though
jeeze... the lady gaga track in the background makes it seem like everyone died there.
hope you don't mind a small fix...
not sure why you would build something that depends on economic sustainability to even exist in the first place. There's no blood going into these sort of cities. Not sure what they were thinking...
they're most probably building it for the sake of building,
to keep a lot of young people employed in construction on one hand, so they have a chance to, actually, work, as opposed to form gangs or/and shake the political ground there
and on the other hand, there's clearly a lot of money laundering (not exactly accurate, but I don't know a better term in English) - a lot of people are getting insane monetary bonuses because they're leading the construction industry so well and so efficiently,
so they could pump a little bit more government money into construction projects, and everyone involved can have a nice thick piece of cake at the end.
I wonder what happens to all the US. debt to China if their government gets overthrown in a revolution?
I assume their government feels confident enough and has enough military power to bury any sort of revolution, run it over with a bulldozer and build a Smiling Dragon of Innocence luxury apartment complex on top.
I am so glad i saw this, never knew this was going on.
My wife if from Shanghai originally and wanted to buy
some property while we live in the USA.
Sure glad we didn't go do this, looks to be a bubble about to burst soon.
Thanks for this post.
Really weird, not surprised though. It sounds like another economy ready to burst
I wonder what happens to all the US. debt to China if their government gets overthrown in a revolution?
The debt would still stand.. but its highly unlikely that the governemnt in China would ever get overthrown.
not surprised by the article at all. The wealth gap in China is huge and that is a problem, but you cant grow a middle class overnight but the middle classes there are growing. Like many things in China changes will happen not in years or even decades but over generations. The west is way ahead in this aspect and what progress that occurs in China may seem slow by western standards. Its the same with political freedoms, it will take time.
If they were doing this just to keep people employed/busy, then why not renovate housing systems for the poorer people of the nation? Seems to me like they are just building these to look more prosperous to other nations.
Replies
here's an article with some more pics
And that's just what happened. Some local officials and local construction businesses made money and then sold the stuff with a profit to some other companies and that's enough to consider the whole thing a "success" here. Now if people actually want to live there is an entirely different matter for the Chinese...
edit: keep in mind they have a bubble developing here and everyone thinks that buying an apartment at any time, even if you don't live in it or don't rent it out, is a good investment. After all, prices have just gone up ever since they embraced free enterprise...
I really think this sort of expenditure would be better put making expensive, ridiculous tourist attractions in Shanghai or Beijing or something..
science r&d? I mean really....
not sure why you would build something that depends on economic sustainability to even exist in the first place. There's no blood going into these sort of cities. Not sure what they were thinking...
Then they sell this to some investors who think they may be THE big deal -> more profit!
If it's not a big deal, then someone makes more money by tearing it down again and selling the scrap metal... welcome to China...it all makes sense here where western concepts as sustainability don't apply. It's all about short term profit
What's funny is that they actually followed through on this insane plan and built the city instead of channeling the money around some other ways (like we do it in the west
Added benefit: the local politicians can pat their back for providing jobs...everyone wins *cough*
I wonder what happens to all the US. debt to China if their government gets overthrown in a revolution?
they're most probably building it for the sake of building,
to keep a lot of young people employed in construction on one hand, so they have a chance to, actually, work, as opposed to form gangs or/and shake the political ground there
and on the other hand, there's clearly a lot of money laundering (not exactly accurate, but I don't know a better term in English) - a lot of people are getting insane monetary bonuses because they're leading the construction industry so well and so efficiently,
so they could pump a little bit more government money into construction projects, and everyone involved can have a nice thick piece of cake at the end.
I assume their government feels confident enough and has enough military power to bury any sort of revolution, run it over with a bulldozer and build a Smiling Dragon of Innocence luxury apartment complex on top.
My wife if from Shanghai originally and wanted to buy
some property while we live in the USA.
Sure glad we didn't go do this, looks to be a bubble about to burst soon.
Thanks for this post.
The debt would still stand.. but its highly unlikely that the governemnt in China would ever get overthrown.
not surprised by the article at all. The wealth gap in China is huge and that is a problem, but you cant grow a middle class overnight but the middle classes there are growing. Like many things in China changes will happen not in years or even decades but over generations. The west is way ahead in this aspect and what progress that occurs in China may seem slow by western standards. Its the same with political freedoms, it will take time.
If they were doing this just to keep people employed/busy, then why not renovate housing systems for the poorer people of the nation? Seems to me like they are just building these to look more prosperous to other nations.
Oh it'll collapse, but nobody will die.