China's Ghost Cities

         This video from Vice (first 13min) and the below article from the BBC cover a part of China's corruption by highlighting the "Ghost Cities" of China. These "Ghost Cities" are exact replicas of Western cities but with extremely low occupancy. For example: Tianducheng was built to be an exact replica of Paris (including it's own Eiffel Tower), however it's occupancy has remained at around 2%. The primary function of these "Ghost Cities" seems to be as a place for wedding photos and tourism.
         So why are these cities so empty? To put it simply, they are too expensive. Normally. Supply and Demand economics would suggest that the lack of occupancy would lower the cost of real estate in these cities and inspire migration; however, thanks to China's communist policies and accompanying economic regulations the real estate prices remain fixed, and thus the cities remain empty.
          So then why does China continue building these "Ghost Cities"? Well, the next time you hear president Trump rambling on about how J-ina is cheating or manipulating their economy, this is what he is talking about. Basically China's government comes into local farming communities, kicks everyone out and enlists these massive city construction projects which boosts their GDP because they are employing people and creating/increasing real estate value all over China. However, China's GDP doesn't take into account the sale or use of these properties, only the construction.
          What does all this mean? Well, 50% of China's GDP comes from construction, as such, on paper their economy seems to be booming (Lipstick on a pig). This is the explanation given for China's unprecedented economic growth by economists, as opposed to their exporting capacity which has largely diminished/shifted to places like Mexico. The implication of this is that China is creating an unprecedented housing bubble. Comparatively, during the USA's housing bubble, construction made up around 16% of our GDP. The cause for concern here could also very likely be global, as China's economy has become so interconnected with the world, and in particular the USA' economy, (think domino effect).


https://www.youtube.com/watch?v=trs_udhjWqc
https://www.youtube.com/watch?v=qPjGWcM3Awc
http://www.bbc.com/future/story/20170223-chinas-zombie-factories-and-unborn-cities