This essay analyzes the political economy of the urban ruins captured in Greg Girard’s photo album Phantom Shanghai. Rather than being marginal, irrelevant or merely objects for nostalgia, the ruins of buildings produced by real estate speculation offer crucial insights into the workings of the urban political economy and reflect wider trends of urban governance. Examining how building ruins come about in the first place and how they are represented in visual media can help us better understand the processes of urbanization and place making, and the central role of destruction in contemporary Chinese urbanism. This essay illustrates this point by analyzing the economic function, political legitimation and cultural significance of demolitions and ruins in urban China.