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China adopts new rules to quell huge source of unrest

China to expand property controls: report
Beijing (AFP) Jan 23, 2011 - China is to expand its limits on property purchases to second and third-tier cities, a report said Sunday, as it steps up efforts to cool its real estate market. Authorities have drawn up a list of cities that will have to implement the limits, the Chongqing Evening News quoted an unnamed high-level official at the Ministry of Housing and Urban-Rural Development as saying. Qingdao and Jinan in the nation's east are among cities set to put the rules into effect, the report said. The ministry was not available for comment when contacted by AFP.

Several cities around China have already issued property purchase limits. Beijing was the first to announce such rules last year when it limited families to one new apartment purchase, and Shanghai followed suit in October. According to the report, a total of 16 cities have issued such regulations -- one of several measures aimed at cooling China's property market. The government has also hiked minimum downpayments needed for property transactions to at least 30 percent, and the central bank has raised interest rates twice since October. It has also increased the amount of money banks must keep in reserve in a bid to curb lending. However, property prices have stayed stubbornly high, posting their fourth straight month-on-month rise in December. Analysts have blamed the government's massive stimulus measures launched to combat the financial crisis in late 2008 for flooding the market with liquidity that has led to rising property prices and inflation.
by Staff Writers
Beijing (AFP) Jan 23, 2011
New rules aimed at ending illegal forced demolitions have come into force in China, state media said, as the government moves to quell what has become the nation's biggest source of unrest.

The regulations seek to ease disputes over the expropriation and demolition of people's homes to make way for new buildings, Xinhua news agency reported late Saturday.

Under the rules, which came into effect Friday, violence or coercion must not be used to force homeowners to leave.

If government authorities cannot reach an agreement with residents over expropriations or compensation for their property, demolitions can only be carried out after the local court has reviewed and approved them.

The previous rules had authorised local governments to enforce demolitions at their own will, the report said, quoting unnamed officials at the Ministry of Housing and Urban-Rural Development and the State Council, China's cabinet.

Neither were available for comment when contacted by AFP.

Land disputes have become China's most volatile social problem as officials and developers seek to cash in on the nation's property boom, sometimes forcing people out of their homes without proper compensation.

According to figures released by the China Academy of Social Sciences (CASS), a top government think tank, fights over land account for 65 percent of rural "mass conflicts", and the problem is highly prevalent in cities too.

Reports of grizzly land dispute deaths emerge on a regular basis.

Earlier this month, a 38-year-old woman was killed by a digger while protesting against a canal project in the central province of Henan, in front of numerous officials and security guards.

And last month, a village chief in the eastern province of Zhejiang was suspiciously run over and killed by a truck after he had protested for years against a government-backed land grab.

Compensation for people's homes is often a key trigger for land disputes, and the new rules state that the money paid for expropriated homes must not be lower than the market price for similar properties.

Yu Jianrong, a CASS researcher, said last month that since 1990, the disparity between money paid to residents and the land's market value amounted to about two trillion yuan (294 billion dollars), state media reported.



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