ECON CHINA REPORT

1. L A N D U S E R E F O R M S A N D T H E I R
I M P L I C A T I O N S F O R O T H E R D E V E L O P I N G
C O U N T R I E S
Winners and Losers in China’s
Urban Transformation

2. CHINA
 Second largest economy in the world
 Around 250 million people from rural areas have migrated to
chinese cities since the 1990’s
 Urbanization

3. LAND FINANCING
 Played a huge role in urban and economic growth
 Leasing or selling public land to the private sector has
monetized local Chinese governments’ most valuable asset
 Brought with it a number of challenges for the country which it
is now being forced to confront, including corruption, rural land
grabs and looming property bubbles.

4. WHERE IT BEGAN
 Former Chinese Leader Deng Xiaoping created the Shenzhen
Special Economic Zone in an attempt to marry market-oriented
forces with socialist principles.
 This included the establishment of land tenures and auctions,
which created a template for land-use that other Chinese cities
could model themselves around
 Over the past three decades, the Chinese have espoused a
super successful urbanization process

5. CHALLENGES
 Foreign capital was permitted to enter the country’s real estate
market by the State Council, has not always allowed a level
playing field.
 Rural farmland has been encroached upon and backdoor
negotiations have resulted in rampant corruption and land
hoarding.
 The result has meant that for many of the city’s workers,
potential mortgage payments have outstripped their monthly
salaries.

6. THE SINGAPORE MODEL
 This model is held in high regard by countries all over the world,
with 80% of the country’s total housing under public control.
 This move towards transparency could help China drive its
economy forward as urbanization continues apace —
particularly when it comes to building housing that is accessible
for all.
 This could also serve as an example for developing nations like
Vietnam, which is also tackling rapid urbanization and could
adopt a similar approach to fund infrastructure.