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China's housing industry boosted with WTO entry - official


2002-12-11
Xinhua

China has boosted the development of its housing industry since it entered the World Trade Organization (WTO) one year ago, an official said recently.

New policies have been carried out by the Ministry of Construction (MOC) to follow the international practice since last December, said Tong Yuezhong, vice-director of the MOC housing industrialization promotion center.

According to Tong, the MOC signed a contract with the Industrial and Commercial Bank of China (ICBC) last January, in which the bank provides preferential loans to programs that meet the housing quality standards of the MOC.

"It helps to improve housing quality by reducing loan risks," Tong said.

In late October, the MOC contracted with the People's Insurance Company of China (PICC) to provide new home buyers with housing quality insurance.

Covering all housing programs that meet MOC housing quality standards, the new insurance, paid for by developers, covers any damage caused by quality problems over a 10-year period, said Tong.

"This program reduces purchasing risks as well as improves housing quality, so it's quite popular among buyers," said Yuan Zhengyu, engineer of the MOC housing industrialization promotion center. "There have been three developers so far who signed contracts with the PICC."

In an effort to improve housing quality standards, the MOC promotion center studies cases from Japan and invites foreign experts into the standards drafting process, which was not allowed before China's entry into the WTO, said Tong.

"China's housing industry needs to learn more from international practice and to receive more overseas investment," said Tong. "Therefore, being a member of the WTO gives us much more room to boost this drive."


   
 
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