Evergrande is just the highlight of the problem. Ghost towns are all over China, unnecessary buildings are being demolished – HNonline.sk

Behind the trend of massive urban development in the world’s most populous country is the government’s efforts to increase domestic consumption. The continuing rate of urbanization in China, in which over the past approximately 50 years the population of the cities has increased according to Bloomberg about 46 percent, should help increase the number of people with higher incomes who are able to spend more money.

The Chinese government’s assumption was that supporting domestic consumption with this tool could reduce the Chinese economy’s dependence on foreign trade. As the largest cities, such as Beijing and Shanghai, restrict the influx of new residents under local restrictions, China has applied an aggressive model of urban development.

As the Chinese economy has been steadily moving away from the agricultural sector in recent decades, urbanization and construction have become economic drivers. Approximately ten huge cities with more than ten million inhabitants have gradually grown in the country.

Buildings to shoot

One of the risks of building new cities that keeps the trend of migration from rural areas going is that they may not be able to be filled by people or tax-paying companies.

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