Is China a bubble?

Discussion in 'Economics' started by a529612, Jul 24, 2006.

  1. jmccain


    It is a different situation all together. When you're a slave to your government then obviously, you have nothing to say when they demolish your home in front of your eyes.

    #31     Jul 31, 2006

  2. I was in China last year and I think people do get compensated if their houses are taken for development. The compensation works this way. Say your house is 1000 sq feet, then the government gives you a brand new condo, say, 2000 sq feet, then you have to pay the 1000 sq feet difference. The worst possible outcome is that your house is taken down to build a shoping center, but the government does not have any condo close, so you are given a condo in a different location.
    #32     Jul 31, 2006
  3. Hayek


    I am Chinese.

    We call the action you described as "Chai Qian" in Chinese, meaning that certain resident HAS TO abandon the house he lives, normally in the urban area, and move. The government will give the company in charge of this kind of action a bunch of RMBs in order to compensate the resident. But in reality, those companies are run by rogues so that they can use unconventional measures to force residents to move, and at the same time those companies take some of the compensation funds to their own wallets and pay less to residents. The result is residents can not afford to buy even a small apt in urban area with the shrinking compensation. They have to move to suburb far away from the location they work daily.

    A lot of disputes occurs in "Chai Qian" everyday in China and some residents choose suicide to protest.

    Even before the Reform and Opening Up in 1980, Chinese has been not so poor as western world imagined. The central government had been enforcing a low wage policy since 1949 and the fiscal income was distributed to build up factories and buildings, roads and railways, nuclear weapons and satellites. That policy made Chinese individuals look like penniless. But the wealth they created were not the wealth they privately held. A large amount of wealth they created were turned to be state-owned wealth.

    However, in the process of Reform and Opening Up, state-owned wealth were stolen by vested interests step by step, mainly the family member of high level bureaucracies. That was the fuse of the Tiananmen Square protests in 1989, because normal Chinese didn't like their wealth being stolen.

    The central government knows that China will not consistently develop in this way but they can hardly do something. When they want to push some policies benefitting normal civilians, their family members may jump out to object first.

    #33     Jul 31, 2006
  4. If you think you are not a slave to yours, you are very very young.

    You (we) are only as free as they want to allow us to be.
    #34     Jul 31, 2006
  5. Ignoring the spelling the sentiments you've been expressing in this thread are those of a silly teenager. Are you a silly teenager?

    LOL. Or better than that are you are paid promoter for the Chinese Government?
    #35     Jul 31, 2006

  6. I am always wondering if the compensation of "Chai Qian" depends on location, i.e . different city may have different policy. I have a friend who bought a run-down condo in an area near Hong Kang last year in anticipation that it will be taken by the government for development (a kind of value investment).
    #36     Aug 1, 2006