Analyst Questions Regime’s Housing Reform Plan

By Zhong Yuan, Epoch Times
March 13, 2010 12:42 am Last Updated: March 13, 2010 11:12 pm

Reading from an official work report during China’s 11th National People’s Congress on March 5, Chinese Premier Wen Jiabao said the Chinese communist regime will curb the soaring price of housing and will “satisfy people's basic need for housing.”

Wen blamed China’s current housing problems on malpractice in the real estate sector, stressing that the regime will “make greater efforts to deal with violations of laws and regulations, such as keeping land unused, property hoarding, and price rigging.”

The feasibility of Wen’s housing reform plan, however, has been questioned by China experts, including Taiwanese attorney Winifred Tung.

Tung told The Epoch Times on March 5 that the Chinese regime has indulged local governments with unchecked illegal land enclosures for the past two decades. As a result, more than 60 percent of the local government revenue now comes from real estate.

Tung said that Wen should know that “government entities at the local level and interest groups will be the first to reject” his plans for reform.

Tung said Beijing has found a scapegoat in Richard Li, the son of Hong Kong tycoon, Li Ka-shing.

China’s official media have been lashing out at Richard Li for hoarding land in Beijing after he chose “I want true democracy” for his campaign slogan when he ran for a seat with the Information Technology Functional Constituency.

“Blaming everything on the land hoarding of one company will not solve any problems,” Tung said. “People still can’t afford houses.”

Tung went on to say that the Chinese regime could have built affordable housing for the people if it had really wanted to, since the regime owns all the land in the nation.

“The housing bubble that developed over the past two decades is the fault of none other than the Chinese communist regime,” Tung said. ”Reform under the current (political) structure? That’s just impossible.”

Read the original Chinese article.