They also suggested that the best solution was the construction of low-rent apartments.

“The provision of such housing is an urgent and essential part of our social security system,” Liu Zhifeng, vice-minister of construction, told the recent national low-rent housing forum in Shanghai.

“Our aim is to see that everyone has his or her own living space,” Liu said. The three-level housing system adopted in cities is connected to this aim.

The three-level system means that wealthy people can buy luxury apartments and houses, but local government must help low- and middle-income urban residents to purchase adequate and affordable housing. And finally, impoverished urban residents will have low-rent housing provided to them by the local government.

“The markets do not favor those people who have relatively low incomes, and to safeguard their right to adequate living space, government intervention is essential,” said Liu.

According to Liu, the policy is flexible and different local governments can use different methods to reach their goal.

Some cities have found practical solutions. In Shanghai, the government gives each member of low-income families 280 yuan (US$33.70) per month to ensure that they can afford the minimum per capita living space of 7 square meters.

The government provides basic housing for disabled people and the family members of army men and revolutionary martyrs.

(China Daily 04/24/2001)