China’s XI faces pushback on property-tax plan

The president of China Xi Jinping has come up against resistance after trying to implement a property tax across the country aimed at bringing housing speculation under control.

According to the Wall Street Journal, Xi tasked the most senior of China’s four vice premiers with implementing a nationwide levy.

Beijing will instead focus on rolling out a more limited tax plan because of the resistance, in addition to exploring its options around providing more affordable housing instead.

Initial proposals considered testing the tax in up to 30 cities, however it has duly been scaled back to ten, according to reports.

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Those who expressed their opposition to the policy include local governments who suggested it could negatively impact property values or lead to a sell-off.

Additionally, high-ranking members of the CCP and lower-level members overwhelmingly expressed their disapproval via internal debates.

The debacle surrounding Evergrande highlighted the dependence of China's economy on investment in real estate.

However, rebalancing the economy is providing a headache for Xi, especially when it comes to finding a way to create demand outside of real estate.