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There are a lot of contributing factors: 1. Shenzhen is sort of a tech center of Southern China so it requires good and new infras 2. Local governments are ec
by hnthrowaway0315 3y ago
There are a lot of contributing factors:
1. Shenzhen is sort of a tech center of Southern China so it requires good and new infras
2. Local governments are economically and politically encouraged to build infra (Google 土地经济) in general
3. Infra is built faster and cheaper in China so Shenzhen is not an outlier. Usually it starts with some planning to build a line in a remote area (to save buyout costs) -> line gets built -> other infrastructures including super markets, post offices, whatever get built -> apartment buildings get built -> government gets paid back by taxes collected from real estate companies, super markets and other expanded economy entities
4. Some cities actually lost the bets on building new infras and this created a whole range of issues (Google 地方债 and 地方融资平台公司债)
- nirui 3y agoA well-know thing is, rebuilding things was a fairly common (and for some, important) method for the local gov to raise funds. One instance in our city almost 10 years back, they built a perfectly acceptable 4-lane city road, and then completely rebuilt it again just few years later. Of course that method is no longer be used as wild as it did under chairman Xi and his uh... successful economic policy which greatly reduced the need of roads. But things are bit different back in 2016.