Why Homes Are Being Demolished in China, Part II
Chinese authorities carry sticks as they prepare to stand guard before workers demolish houses which are claimed illegal by local government in Wuhan, central China's Hubei Province on May 7, 2010. Land seizures have been a problem for years in China and forced evictions have not been uncommon. (AFP/Getty Images) On June 2, Sound of Hope Radio, an independent Chinese-language radio network, invited the well known economist and Chinese affairs expert Cheng Xiaonong to talk about why the Chinese regime is so eager to demolish homes and acquire land. This is the second and final part of the interview of Cheng. Yu Shan: This part [revenue derived from land sales] is the income that does not belong to the budget. So the local governments will not make it public? Cheng Xiaonong: They never make it public. Even the central government is not clear about it. Generally speaking, local governments have three sources for fiscal income. One source is the tax, which is the budget inco...