This report will be discussed on the issue of Chinese housing price control policy and its effects. The research has showed in the past decades, Chinese housing pricing was increasing at an unhealthy amazing rate in almost every city. The Chinese government has kept publishing a series of policies in order to control the increasing price. The report will apply this issue to Economic in One lesson and analysis the inflation and government pricing fixing effects.
Since the reform and opening-up policy published in China in 1978, Chinese economy boomed in the past decades. China is facing great opportunities with its Chinese features; however, it also brings some negative impacts to the society and its people. One of them is the unaffordable commodities price and the most outstanding one is housing price. Inflation is unavoidable since the economic develops, however government do want to keep commodities price stable but the housing price in China is surely deviant. The Chinese Ministry of Housing and Urban-Rural Development is now urging local governments to formulate housing price control targets and standards and set housing price control to limit the dangerous inflation of high end housing units.
Economic is about to allocate resources in an efficient way and during the allocation people face trade-offs (Guns&King,2009). Recent years, in Chinese society, increased numbers of people choose to buy property as an investment way rather regards property as a living place. Therefore, with the limited housing resource and increasing demand, the housing pricing keeping rising, especially in big cities, such as Beijing and Shanghai. In order to guide economic develops in right trends, by the end of March, 90% of cities in China had proposed targets for the control of housing prices. Most aimed to keep the increase in residential property prices to around 10% (Wang,2011)....