Un-Real Estate the Social Life of Temporary Wealth in China Ulfstjerne, Michael Alexander
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Un-real Estate The Social Life of Temporary Wealth in China Ulfstjerne, Michael Alexander Publication date: 2015 Document version Early version, also known as pre-print Document license: CC BY-NC-ND Citation for published version (APA): Ulfstjerne, M. A. (2015). Un-real Estate: The Social Life of Temporary Wealth in China. Det Humanistiske Fakultet, Københavns Universitet. Download date: 02. okt.. 2021 FACULTY OF HUMANITIES UNIVERSITY OF COPENHAGEN UN-REAL ESTATE THE SOCIAL LIFE OF TEMPORARY WEALTH IN CHINA PhD Dissertation Michael Alexander Ulfstjerne Department of Cross-Cultural and Regional Studies Supervisor: Lars Højer Co-supervisor: Mikkel Bunkenborg Dedicated Lavinen & Spiren In recognition of the debts that I have accumulated amid lengthy absences 2 CONTENTS SUMMARY 5 ACKNOWLEDGEMENTS 7 NOTES ON THE TEXT 9 PROLOGUE 11 INTRODUCTION 14 THE ARGUMENT 17 BACKGROUND – THE MAKING OF A PERFECT STORM 20 ANALYTICAL FRAME 25 FIELDWORK AND METHODS 33 OUTLINE 43 CHAPTER 1 - CITY, MAKES LIFE EVEN BETTER 46 HOW WAS DEVELOPMENT LEGITIMISED? 47 HOW WAS THE TRANSFORMATION ENFORCED? 57 HIGH MODERNIST SCHEMES, A DISCUSSION 67 CONCLUSION 78 CHAPTER 2 - UNFINISHING BUILDINGS 81 STAKEHOLDERS AND COINCIDING INTERESTS 83 EMPTY CONTAINERS OF SPACE 94 CONCLUSION 105 CHAPTER 3 - THE IRON BUBBLE 108 FROM THE IRON RICE BOWL TO THE IRON BUBBLE 110 COMMUNITY OF THE BUBBLE 122 CONCLUSION 132 CHAPTER 4 - THE TOWER & THE TOWER 135 NEW WEALTH IN THE COAL TOWER, 2011 137 UNTIMELY RUINATION IN THE COAL TOWER 146 CONCLUSION 156 CHAPTER 5 - CITY OF LOANS 160 THE FINANCIALISATION OF EVERYDAY LIFE 161 MASS LENDING 171 CONCLUSION 182 3 CHAPTER 6 - DEBT OF DREAMS 185 ORDOS LAW 186 SPOILS 198 CONCLUSION 212 IN SEARCH OF A NEW DIAGNOSIS, BY WAY OF CONCLUSION 214 EPILOGUE 222 GLOSSARY OF CENTRAL CHINESE TERMS 225 APPENDICES 229 BIBLIOGRAPHY 232 RESUMÉ 245 4 Summary This dissertation builds on seven months of ethnographic fieldwork in Ordos, Inner Mongolia, but also on data collection and interviews that stretch back to 2008. Exploring and tracing the momentum of a local economic boom into its subsequent bust, the dissertation examines the diverse ways in which citizens from various strands of society were affected by, and actively took part in, the boom as well as the bust. To examine this trajectory, the chapters of this dissertation analyse schemes across scale, moving from the overarching schemes of states to the private sphere of interpersonal relations of exchange. The first part of the thesis shows how the intensity and scope of Ordos’ boom and bust was facilitated by a particular configuration of components, including windfall profits from a resource bonanza, a local state eager to leapfrog into urban modernity, generous relocation compensation, and lax enforcement of regulations that could inhibit private, informal investments in the property development sector. Yet beyond these configurations that brought about an almost perfect storm considering the pace and scope of Ordos’ growth and decline, the same chapters explore a broader, popular sense of urgency beyond that of elite pro-growth coalitions. The local property development sector had been boosted through informal credit arrangements, locally referred to as ‘folk lending’ (minjian jiedai) or ‘high interest loans’ (gaolidai). The second half of the dissertation unfolds the intimate relationship between the expansions of the city and the everyday financial disposition of the local populace. These chapters take a closer look at the social and material effects of the boom as funds and aspirations evaporated in the aftermath of what proved to be temporary and, in hindsight, precarious wealth. Beyond the simple scramble for power and wealth, mass participation in the schemes attested to a wider re-shuffling of values and the recalibration of local systems of wealth distribution, including the meanings of labour and money. Boom, bubble, and bust, this dissertation argues, are not about failure as such. It concerns the momentum that forms and drives schemes into a collapse. Rather than a straightforward case of state failure or dispossession by effect of large-scale development schemes in China’s hinterlands, the dissertation shows how a ‘community of the bubble’ took form. A community that was fraught by a widespread urgency to catch up, and one that eventually helped consolidate or conceal the more dim sides of Ordos’ growth. The local resistance to accept reports that held Ordos to be a ‘modern ghost town’ due to its excess construction as well as rumours about the impending burst of financial bubbles was a defining 5 feature of this community. This resistance cut across class, ethnicity, and employment sector, and accentuated an intimate space of common, yet unspeakable knowledge. In between the local state’s attempts to leap forward and the population’s reaction to this leap, the analytical aim of the dissertation is therefore to shed light on the more subtle forms of complicity and dependency upon which the broader development was founded. Instead of being a retrospective optic that investigates why schemes fail or go awry, the dissertation examines Ordos’ urban leap as it unfolded, while shedding light on what such failures produce. 6 Acknowledgements In the course of this dissertation, I have accumulated a great deal of debts of gratitude, and only few will be acknowledged here. First of all, not much would have come out of this if it wasn’t for the generosity and companionship of the people that I encountered in the field. Some appear in this book under pseudonyms, yet still deserve great merit. I particularly want to thank Mr Li for putting up with my many tiring questions, for his assistance in all my inquiries, our heated discussions, and to his family who were also indispensable for the becoming of this dissertation. I’m also deeply indebted to the civil servants of Ordos for their friendship and generosity, allowing me insights into private as well as public matters, and all that in between. On the Danish side of things, I also owe substantial debts of gratitude among colleagues and friends at my research department. These have been crucial for fundamental elemetents in the dissertation. Particularly my advisor, Lars Højer, deserves much credit for his patience throughout many thorough readings, for his confidence in me, and inspiration. What Lars terms as his neurotic stringency in ethnographic writing and analysis was helpful to counter my own lack thereof. And, to my co-supervisor, Mikkel Bunkenborg, whose creative input, solid regional knowledge, and his way with words has been invaluable. To mention a few others who were more than generous with time, ideas, feedback, discussions and friendly support I particularly want to mention Andreas Bandak, Mikkel Bille, Jørgen Delman, Martin Demant Frederiksen, Regnar Kristensen, Esther Fihl, Stine Puri Simonsen, Lan Wang Valeur, Benedikte Møller Kristensen, and Rune Bolding Bennike. Also, I’m indebted to Max Woodworth whom I first encountered in Ordos during fieldwork – always generous in sharing ideas and information – and, indeed made fieldwork a less lonely endeavour. Max’s academic work on Ordos has also be a central site for inspiration. My gratitude also goes to others who have contributed greatly in academic as well as personal matters: Dan Hirslund, Ayo Wahlberg, Morten Axel Pedersen, Amanda Hammer, Lars Ove Trans, Anja Kublitz, Rune Selsing, Finn Stepputat, Christian Lund, Mai Corlin, Jakob Blaabjerg Pedersen, Philipp Lassig, Henrik Kragh, Bert de Muynck, Mónica Carriço, You- tian Hsing, Michael Keane, Can Seng Ooi, and Jane Guyer. Also, I want to acknowledge those who have provided the necessary financial support for fieldwork expenses and participation in conferences: Knud Højgaards Fond, Niels Bohr Fondet, S.C. Van Fonden, Videnskabernes Selskab, and Asian Dynamics Initiative. 7 Last but not least, those who have been by home front supporters throughout the entire process of fieldwork and writing: my carnalita, Frida Stepputat, whose support and optimism simply makes times brighter; the great support of my dear parents, including those of my better half. Without their support this would not have been possible. To my son, Leo: you have helped keep my mind and heart in place. Even so kind as to caress my hands in the belief they had been worn from long days of hard labour. To my partner and love, Maya Mynster Christensen. Thank you for your patience throughout absences of all sorts. For your sharp observations and loving support. And the effort you put into the final process. Although they are merely words, these are for you. 8 Notes on the Text On transliteration: Throughout the text, Chinese words are written italicized using the pinyin form. The most central Chinese terms are listed in a glossary in the end. Only in the few cases where characters’ multiple meanings might help readers make out other meanings than that of my translation do I include Chinese characters. Names of people and places generally appear in pinyin, apart from a few cases where different kinds of romanization are common. For instance I refer to Ordos and not Eerduosi, and the Chingghis Khan instead of Chengjisihan. Translations from Chinese to English are my own, although the few passages, proverbs, and bits of interviews that was beyond my language proficiency, have benefitted immensely from the kind help and assistance of Mikkel Bunkenborg and Lan Wang Valeur. On currency: throughout the dissertation Chinese Renminbi is referred to as RMB or Yuan. The exchange rate in 2011 was approximately 1 US dollar to 6,45 RMB, or 1 Euro to 9 RMB. On names: In the dissertation’s second chapter high-end developers, international architects and renowned Chinese artists are identified by their real names due to the wider publicity of the case. Yet as a general rule, apart from those few who expressed that they rather appear by their own name, I refer to interlocutors using pseudonyms.