Shoddy construction throughout the world, but especially in China and the U.S., is a type of mal-investment, and it will have consequences. Everybody seems to know about China's real estate bubble and brand new empty cities, but few seem to understand that maintenance is essentially non-existent.
Build it new, and when it gets "old" (say, 20 years), then tear it down and rebuild it in grand style. That has been the Chinese mindset since the Great Transformation launched in 1978 ("To get rich is glorious").
But when real estate development becomes half of the economy, and literally thousands of highrise buildings have been thrown up, along with glitzy malls, U.S.-style suburban developments, grand civic plazas, etc., then at some point there won't be enough money in the Universe to tear them all down and rebuild them in a yet grander fashion. Full article at; China and US Real Estate
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