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For every year they sit empty, they depreciate physically and they also need regular maintenance. Those are actual resources being used. And if the buildings ar
by iwwr 15y ago
For every year they sit empty, they depreciate physically and they also need regular maintenance. Those are actual resources being used. And if the buildings are in the wrong location altogether, it may be cheaper to just tear them down than try to find a market for them.
- mousa 15y agoEvery year they need regular maintenance is a year a few more people have jobs within their capacity. In a lot of areas I think high level decisions are made to keep people busy. I'm fairly positive they give huge subsidies for hiring employees, because if you walk in a grocery store every aisle has a couple idle employees. By our standards that can't make sense but for them right now I think the main goal is keeping unemployment low.
- robryan 15y agoRegular maintenance may be a lot lower ongoing cost in China than America, maybe because of that it makes more sense to build ahead of demand.