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"But once the price went crazy, it's a matter of time before the market collapsed," said Liu.

"But we had faith in this area because we knew it would become one of the two development engines of Shanghai. The Lingang Special Area in the eastern part of the city was to feature high-end manufacturing, while Hongqiao was to become an important research and development hub that radiates the spirit of the Yangtze River Delta region," he said.

"But there is a saying that when everyone is losing their head, it is most important to keep your own head. … I think the words he used, and the way he used them does not make the situation better," Lampton told China Daily on Tuesday.

"China is committed to the path of peaceful development. We will make joint efforts with other countries to promote win-win cooperation, uphold international rules and order, support free trade system, and build a community with a shared future for mankind."

"China has achieved over 60 percent urbanization. The figure will reach 70 percent to 80 percent in the future, and the cities' size will only grow bigger and bigger, presenting challenges in their management and operation," he said.