The Rising Influence of Rising Affluence

[DewDiligence]

The existence of “ghost towns” in China is well known, but it’s not a harbinger of an economic collapse, IMO. Rather, it signifies what can go wrong when ordinary market forces are trumped by political imperatives.

In other words, Western investors who consider China’s ghost towns unduly bearish are judging China by Western standards, which can lead to erroneous inferences.