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Property rights. The rapid growth of cities has led to government transfers of rural land to urban and industrial uses. Inadequate compensation to farmers whose property rights have been poorly defined has fueled growing civil unrest, while urban leaseholders seek to strengthen their new property rights.
Property tax implementation. Recent tax reform has reduced local government revenues and prompted local officials to rely on land sales receipts, fees, and off-budget revenues to finance government expenditures. China’s government is seeking to implement a property tax as a local revenue source to take advantage of the rapid growth of the real estate market.
Farmland preservation. The large amount of land removed from agricultural production by the complex forces of urbanization has exacerbated concerns about farmland preservation, especially related to food security.
Urban planning and development. Rapid urbanization has also resulted in increased urban poverty, housing affordability problems, inequality between urban and rural population groups, regional disparities, and other social and economic challenges. China’s urban planning practices are in need of reform to better reflect market forces and economic behavior.
Environmental sustainability. China’s economic and demographic changes over the past 30 years have been associated with severe environmental degradation. With rapid urbanization forecast over the next decade, there is growing consensus that China must find a more sustainable development model. More sustainable cities are integral to any low-carbon development trajectory.
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