China's Infrastructure Investment Boom and Local Debt Crisis

Tsui, Kai Yuen

doi:10.2747/1539-7216.52.5.686

Cited by 141 publications

(111 citation statements)

References 22 publications

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“…Local and central government have been pulling in opposing directions. On the one hand, local government has gone helter-skelter in promoting urban and economic growth to raise revenue (Tsui, 2011). On the other hand, central government has been desperate in the last few years to curb excessive urban growth because of its inflationary impact, especially on house prices, and because of the potentially severe consequences of excessive speculative urban growth.…”

Section: The Role Of Debt Financing In Land-based Urban Growth Coalitmentioning

confidence: 99%

Shifting land-based coalitions in Shanghai's second hub

Jiang

Waley

González

2016

Cities

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Section: The Role Of Debt Financing In Land-based Urban Growth Coalitmentioning

confidence: 99%

Shifting land-based coalitions in Shanghai's second hub

Jiang

Waley

González

2016

Cities

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“…Provincial leaders receive that target and then quantifiably break down these tasks in order to assign the pieces to their immediate lower-level subordinates (naming, at the prefecture-level). Such vertical subcontracting also takes place to the relationship between prefecture-level and county-level and further the relationship between county-level and township-level (Edin, 2003;Tsui, 2011).…”

Section: Creation Of Additional Land Quotas Via Territorialization Tamentioning

confidence: 98%

“…Broadly speaking, land finance can be categorized into two types (Tao et al, 2010;Tsui, 2011): (1) land-related taxes, such as urban construction and maintenance taxes, arable land occupation taxes, deed taxes, house taxes, stamp duties, urban land use taxes, and land value-added taxes; and (2) land-related government fees, such as land rents, land lease fees, new construction land compensation fees, and land reclamation fees. Land finance now plays a key role in local fiscal structures with the percentage of local annual revenue arising from land finance rising from 17% (130 billion RMB) in 2001 to 63% (3300 billion RMB) in 2009 (Fig.…”

Section: Background: Land Development Fever Since the 1990smentioning

confidence: 99%

Local farmland loss and preservation in China—A perspective of quota territorialization

Chien

2015

Land Use Policy

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“…44 As part of the new arrangements in 1994, local governments were given control over land use. 45 And as other sources of finance were closed off, then they became increasingly reliant on selling land use rights to raise local revenue, particularly in the years following the …”

Section: Chinese State Capitalism and Centre-local Financial Relationsmentioning

confidence: 99%

Financial transitions in the PRC: banking on the state?

Breslin

2014

Third World Quarterly

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The reappearance of substantial debt in China after 2008 has refocussing attention on the sustainability of the existing financial "model". It's not just that "traditional" forms of bank centred debt has re-emerged, but that the informal "shadow banking" sector also seems to be increasingly fragile, generating debts that do not seem easy to repay.Explanations for the current situation tend to focus on the way in which China responded to the global financial crisis, and the incentives that exist to go outside the formal and more regulated banking system into often more riskier activities. But in addition to these short term events, there are more fundamental structural issues. As the current financial system has evolved from the old (state planned) one, it contains within it some of the DNA of its predecessor. In addition, the spatial distribution of power and authority is inextricably linked to the way the financial system functions. So while it might be possible to tinker with some elements of current financial problems, the relationship between local government financing, land, the banking system and key economic sectors make it difficult to resolve more structural issues without taking a holistic approach; a holistic approach that would have fundamental consequences for the nature of the Chinese state, and the distribution of power within it.

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China's Infrastructure Investment Boom and Local Debt Crisis

Cited by 141 publications

References 22 publications

Shifting land-based coalitions in Shanghai's second hub

Shifting land-based coalitions in Shanghai's second hub

Local farmland loss and preservation in China—A perspective of quota territorialization

Financial transitions in the PRC: banking on the state?

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