Abstract
First, China’s national balance sheet showed a rapid expanding trend in 2007–2011. Rapidly accumulated foreign assets, infrastructure and real estate assets were the dominant factors for the expansion of non-financial assets.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
In the operating budgetary income of central state-owned capital in 2010, transferred to finance spending on social security of 10 billion yuan, accounting for the central enterprises accounted for only 0.1% of net profit. There are four billion yuan in 2011 was transferred to government for the proportion of social security expenditure, the central enterprises accounted for net profit of only 0.4%.
- 2.
This is equivalent to some sort of “voting with their feet” mechanism (threat of exit of liquidity factor). That is, residents’ selection of public services by changing their place of residence can affect the value of real estate, which in turn have a substantial impact on the property tax based on the values of local real estate. Therefore, local governments have an incentive to improve public services.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2017 China Social Sciences Press and Springer Science+Business Media Singapore
About this chapter
Cite this chapter
Li, Y., Zhang, X. (2017). Basic Conclusions and Policy Suggestions. In: China's National Balance Sheet. China Insights. Springer, Singapore. https://doi.org/10.1007/978-981-10-4385-7_7
Download citation
DOI: https://doi.org/10.1007/978-981-10-4385-7_7
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-4384-0
Online ISBN: 978-981-10-4385-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)