Land&Social inequality in China:An Overview of Historical and Current Context

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Social unrest has been rising in China, and policymakers and researchers alike are increasingly interested in how the real estate market has contributed to growing inequality and social unrest. Millions of Chinese can't currently afford to buy their own homes, and millions of Chinese are living below or at the poverty line. Land is the place where people live, and housing is a human's basic need, so the need for land reform is urgent. The inequality problem is becoming severe, and the potential for extreme regime change and social unrest must be tackled. Land reform in China was never an easy problem. . Ironically, poor farmers were given the land, but the CCP took it back and nationalized it. So, legally speaking, nobody in China owns any property but instead is granted the right to use it by the state. This current land arrangement means that local governments are torn between competing incentives. On the one hand, they want sell land more expensively to make more profits. However, they also have incentives to stabilize the housing price and solve the inequality problem to make society more stable and mitigate the risk of social unrest. China has the second-largest economy in the world and it's the fastest-growing developing country in the world. It contributes vast amounts to the overall world economy, and the world economy depends greatly on this growth. But this rapid economic emergence often masks the inequality challenge that is also growing in China. This growing separation between classes, could portend significant social unrest, and potential harm the Chinese and global economy. The challenge of real estate ownership has been cited as both a cause, and effect, of worsening inequality in China. Given this, fact, it's important to study how the issue of land, real estate and ownership has evolved over time, if we are to ever address the broader challenge of inequality. Real estate is the largest time bomb in China right now, if it exploded and the real estate business is bankrupted, it will cause millions of people to lose their job and fuel widespread social unrest. It must be tamed as soon as possible.

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