A failed land development project and its implications for urban governance in China

China’s urban development has been driven by local governments’ land-centered operations. Since land is the most valuable resource under local control, land development has been the central mechanism of China’s urban development model. Local governments, like entrepreneurs, lead the construction of new urban spaces for accumulation, including new towns, mega-urban projects, and eco-cities. Because the expansion of land development is associated with expected income from land sales, it serves as a guarantee for local borrowing. In doing so, local governments channel more investment into land projects, fueling a pervasive trend of building new cities and new areas across the country. The operation of land development depends largely on future land appreciation, from which local states can benefit. In an era of economic downturn and a stagnating property market, land value appreciation is not guaranteed. What are the outcomes of land development projects in contemporary China?