• What do you think will happen in China if this situation goes on (and from personal
experience it is still going on)? Why do you think the Chinese government has
continued this building “frenzy” over so many years?
If the situation in China goes on, the relevance of the cities to the economy will not be
felt. The ghost cities are part of a code and are a representation of an urbanization process
that has been hijacked in the pursuit of growth. Therefore, if the situation of constructing
ghost cities continues, there will be no driver of the growth of the economy, and it will
result in large scale financial waste (Cao, 2015). Besides, the process has laid a
foundation for financial problems that might adversely affect the Chinese economy, and
the promise of further migration will make the situation worse. Tax revenue will continue
to reduce, and the economy will barely grow. The government debt burden will continue
rising due to a lack of resources to repay the interest and the principal.
