The dream of China and the reality appear to be clashing, as China’s urbanization and construction frenzy are coming up against the reality of trying to attract businesses and residents.
The urbanization plans for China are predicted to see 250 million people move from rural areas to cities in the next 20 years, according to Premier Li Keqiang. As Li said in March in his first news conference as the premier, “Urbanization will not only drive tremendous consumption and investment demand, and create employment opportunities, but directly affect the well-being of the people.”
But the reality appears to be different from the dream. Tieling, a small city in northeastern China, for instance, has a ghost town of building waiting for someone to come and live there. Businesses in the area that were supposed to create local employment haven’t happened, and people have not moved as expected.
As Bo Yuquan, a middle-aged owner of one of the only stores in the area said, “Where are the people? There’s no one here. I’ll be out of business soon. My staff and I are discussing moving to Beijing to find work.”
Efforts from the government to draw people to Tieling have failed so far. And yet, Tieling has continued to build with plans by the municipal government to spend another $1.3 billion on projects for the new city. The saying goes, “If you build it, they will come. But in this situation, time will tell if anyone will actually do so.