1. In China, to operate a business, you need a government license. Sound reasonable.
2. To obtain a government license, you must have a unique business address of a "suitable" location of a "suitable" size commensurate with the registered capital. Sounds reasonable.
3. When a large company wants to register wholly owned subsidiary, each subsidiary must have its own unique business address, whether the extra space is needed or not.
4. Think about a holding company with huge capital, hence large office space, but not much action. It can't sublet its own empty space to its subsidiaries which do the real work. All of them must rent their own office space.
5. A strange phenomenon of huge number of rented but empty office towers is born.
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