Privatization and the Chinese Housing Model

This paper examines housing privatization and the characteristics of the Chinese housing model under state socialism. Housing reform has changed the structure of housing provision and fostered the transition of the housing model from an administrative system to a market-oriented system. However, it has not changed the distribution of power and privileges and particularly the power of work units. The continuing role of work units as mediators in the housing market cannot be justified in a market-led economy. Work units operate aimed at maintaining the social structure rather than according to the principles of a market-oriented system.