Abstract
This chapter combs through details of the housing provision reform in China that started in the early 1990s. Doing so enables us to dissect the interlocking relationship between the housing provision reform and the real estate sector of the economy, which has since been one of the strongest pillars to boost the GDP growth not only of the country as a whole but also of municipalities and provinces. The housing reform has generated huge improvements in the living standards of citizens within the last two decades; the real estate sector was a huge impetus to the economy. In this sense, both have been very successful; yet, both have undoubtedly also left behind a trail of unintended consequences from their rapid change.
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Notes
- 1.
Deng’s conversation on April 2, 1980 with Hu Yaobang (胡耀邦), Wan Li (万里), Yao Yilin (姚依林) and Deng Liqun (邓力群). See Leng and Wang (2004) A Chronicle of Deng Xiaoping (《邓小平年谱》), Vol. 1, p. 615.
- 2.
Heads of this Leadership Group were, by chronological order, Messiers An Zhiwen (安志文), Chen Junsheng (陈俊生), Lin Hanxiong (林汉雄), Chen Jinhua (陈锦华), and Li Tieying (李铁映), respectively. Mr. Chen Xuebin was Director of the Office of this Group from 1993 till 1998 when this Leadership Group and its Office were both dissolved at the completion of their charges.
- 3.
This person is Mr. Yu Zhengsheng (俞正声), currently the number 4 person in the country’s Party leadership line.
- 4.
It is the “Decision on Accelerating Urban Housing System Reform,” #43 in 1994.
- 5.
July 1998 State Council “Notice for Further Deepening the Housing System Reform and Accelerating Housing Construction.”
- 6.
According to Chen (2010), the amount of bank loans from the central government was 5 billion, 5 billion, and 10 billion RMB for years 1995, 1996, and 1997, respectively.
- 7.
The Housing Savings Fund (住房公积金) was pioneered in Singapore. Mr. Zhu Rongji (朱镕基) initiated its use in China in 1991 when he was the mayor of Shanghai. Since 1993, this fund had been established countrywide, with contributions from employers and employees, each 5 percent of the salary.
- 8.
For details, see Hou, Ren, and Zhang (2014, Chapter 4).
- 9.
Hou, Ren, and Zhang (2014), Section 6 offers details on the two pilot local property taxes.
- 10.
This is from an official of the Shanghai Local Tax Bureau, December 2016.
- 11.
An and Ge (2012) provide evidence from fieldwork in Chongqing. Our interview of Chongqing local tax officials in December 2016 also provides anecdotal evidence.
- 12.
The Party Secretary of Shanghai in 2011 was Mr. YU Zhengsheng (俞正声), the mayor of Yantai, Shandong Province who in the mid-1980s won wide public support for his push for housing provision reform.
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Hou, Y. (2019). Housing Provision Reform and the Real Estate Sector. In: Development, Governance, and Real Property Tax in China. Politics and Development of Contemporary China. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-95528-5_3
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DOI: https://doi.org/10.1007/978-3-319-95528-5_3
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