p2prada
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This is what I meant when I said you have the land. 50% of your pop is rural means that much land. But that does not guarantee buyers for the land.After all , only about 50% of Chinese are urban population. Only when 70+% of Chinese were to live in urban area and the immigration to urban area were to shrink,would "land-grantee fee" become unsustainable and shrink.
What I mean is currently everything is going as planned? But this policy does not have a contingency planned. For eg: A new global manufacturing powerhouse competitor like India, Indonesia, Mexico etc or a group of such nations. Or even an earthquake.
Other nations do not have the same type of contingency planned for earthquakes, but the loan amounts are not as big as the Chinese loans that we see. Even if natural calamities are impossible, there is a possibility of a competitor that may chew away some of the economic clout.
Taxing is the way to go. But, if you tax a bit too much, it will chew up on per capita incomes. This does not contribute to growth. You first sell for big amounts and then tax them later on will affect real estate prices big time, not to mention the population will not like it.Of course, the huge "land-granting fee" indeed increases much the cost of house-price and stimulate real-asset bubbles . and in a long run, "land-granting fee" will shrink when urbanization in China is finished. so, , CHinese government now is considering to collect house-duty and replace "land-granting fee" with house-duty gradually.