Urban governance, neoliberalism and housing reform in China

Abstract Since 1979, housing reforms in China have been seen as successive state efforts to improve urban governance. The idea is that the state has all along failed to deliver housing efficiently and equitably through the work units and that it is believed that only through the recommodification of housing could the housing problem be ultimately resolved. The housing monetarization policy (HMP) was thus launched in 1998 to replace the long-standing in-kind housing subsidy under the old welfare housing system. The policy aims at providing workers with cash subsidies as part of their wage package to enable them to buy or rent their homes from the market. The purpose of this paper is to explain the implications of the HMP through a neoliberal urbanization perspective. Through the case study of Guiyang, it is argued that while the HMP is successful in improving certain historical housing inequalities, it does not primarily aim at eradicating housing inequalities. HMP has in fact led to more rather than less horizontal inequities. In addition, it is argued here that a market housing system is leading towards increasing urban poverty, greater social polarization and spatial segregation. To improve governance, China needs to keep neoliberal urbanization in check and pay serious attention to its adverse consequences during economic transformation.