China Travel Deals, China Tourist, China Vacation, Chinese Travel

Public-owned housing was originally public property that accumulated under the administration of the planned economy. In July 1994, the State Council issued " The Decision Concerning the Deepening of Urban Housing Reform." This proposed the establishment of a public housing accumulation fund for urban residents to which they, their workplace and the government contributed. It also set concrete targets as regards increases in rentals and sales of housing. As Li Wu, a doctorate student at Rennin University of China, says, " Housing reforms constituted the largest Chinese welfare project ever, bearing in mind that the urban Chinese had hitherto been living on low incomes under rented roofs. The reforms have contributed substantially to the rapid growth of a new industry.

In recognition of the sacrifices made in the interests of the country's construction by those that worked under the planned economy, the new housing sale policy incorporates a price deduction scheme based on length of service. Since its implementation in 1994, more than 90 percent of public-owned housing in large and medium-sized cities has been sold into private ownership.

The Chinese government expects housing reforms to achieve four main objectives. That most easily achievable is reducing its financial burden; next is rapid replenishment of housing funds in order to speed up housing construction. The long-term objective is to establish a just and efficient housing system that is conducive to rational labor mobility. The most immediate goal, however, is to create a new economic growth point that will propel the development of related industries.