"If people believe that other people/firms will move there, they too will move there. If they believe it will fail, they won't and it fails. Changing expectations is critical for success."
I beleive that's the point. Chinese Urbanization has been so accelerated in recent years (mostly driven by government initiatives) that this pace seems to be leading to a sort of mismatch between future expectation and current actions of economic agents. [Ok, I recognize China must be much more complicated than that. I'm jus trying to keep it simple]
Check other posts about China here at Urban Demographics Blog.
