The public housing system, operated since the founding of the People's Republic of China in 1949, has provided Chinese city dwellers with low-cost accommodation. However, the rapid growth of the urban population, the lack of urban development planning, the bias in capital investment, and, especially, the structure of the public housing system itself have caused a severe housing crisis in Chinese urban areas. In recent years, leaders have addressed this problem with a complex series of reforms. These reforms generally move the system toward greater reliance on market forces, but numerous difficulties have emerged in creating housing markets within a centralized political and economic system.
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