How Tech Unicorns Are Just Like China’s “Ghost Cities”

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Fancy villas, high-rise apartment blocks, lakes, parks and sprawling road networks: ghost cities in China have it all – except people. To some, the empty.

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Building a full 5G product stack, without access to US tech, is likely impossible. Rare Earths: China supplies around 80% of world’s rare earths, crucial for electronics, but not effective for retaliation over the Huawei ban–despite the name, rare earths just aren’t that rare. Malinvestment: Tech Unicorns Are Just Like China’s "Ghost Cities."

Unfortunately, the majority of today startups – including today’s hottest unicorns – are burning copious amounts of cash. In this piece, I will make the case that today’s startup phenomenon is very similar to China’s construction of countless empty "ghost cities" for the purpose of creating jobs and economic growth.

Like China’s grandiose infrastructure projects and ghost cities, the majority of today’s tech startups only exist – at least at their current scale – because of stimulus, and are not economically viable, as evidenced by the billions of dollars they are hemorrhaging with no end in sight.

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All around China, there are ghost cities. china has very ambitious plans to modernize and urbanize. For the first time in the ancient country’s long history, more Chinese people now live in urban areas than rural – and they’re just getting started.

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Posts about china’s ghost cities written by k * * hi. so china. and we thought the american housing crisis was bad. last year in 2010, china surpassed the united states as the world’s leading manufacturer. what’s driving this growth? real estate. china is building, and not just a few condos here and there. entire cities. with hotels, monuments and malls. big cities. and no one lives there.

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