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Xinhua Published Five Commentaries on Local Government Land Sales

From March 28 to April 1, Xinhua consecutively published five commentaries against local governments on selling land to increase income. The key points of the commentaries were: (1) land-selling based local finance policies are an overdraft that’s not sustainable; (2) local governments must change the mentality of real estate speculation; (3) the entire government real estate approval process should be transparent to avoid corruption; (4) land monopoly causes vicious competition and pushes land prices up; (5) the high profit and immediate contribution to GDP (which is a major measurement of a government’s performance) discourages local government’s willingness to control housing price.

Source: Xinhua, April 4, 2010