Tuesday, May 17, 2011

Inside a Chinese Ghost City

Here's an amazing report by Bloomberg from inside a Chinese ghost city. Although many believe that China has moved from being a communist country to being a capitalist one, the truth is it is a quasi capitalist/communist country, with much insane central planning that could crash the economy at any time.

The video is here.

1 comment:

  1. this is a rehash of a very old story... but one that should be repeated. Am glad he mentioned the maintenance aspect although he neglected to mention the quality part. There is so much corruption and so many payoffs in the system of supplies that most 10 year old buildings in China look at least 50 years old. I remember a Singaporean GM of an international cement co. here in China with 5 joint ventures saying to me that there is just one word that summons China.. "Pian" .. lying... and telling how difficult it was to compete with both private and state companies that adulterated their cement in ways that an international company could never dare to do. This adulteration allowing for the cheapest price and facilitated by kickbacks to purchasing managers led him to believe that most buildings will collapse within 10 years (the same goes for steel). Chinese always ask me why I spend so much on rent here instead of buying... well...yes I missed making millions in hot speculative bubbles, but am damn glad i don't own rapidly deteriorating assets.