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Explaining China’s High Welfare Spending

Local Models and Drivers of Fiscally Oriented Affordable Housing

Bibliographic Data

ID24224584
AuthorsGaifang Xin (0000-0001-7677-3278, Shanghai University of Finance and Economics), Hanyu Chen (0000-0003-1219-0262, Chongqing University)
Year2026
Volume266
Pages345-364
Publication date2026-06-01
Open AccessNo
TypeARTICLE
VenueThe China Quarterly (JOURNAL)
Journal identifiersISSN: 0009-4439 • E-ISSN: 1468-2648
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0305741026102100
OpenAlexW7140194805
LanguageEN
References cited47

While the world has been undergoing a global wave of welfare retrenchment since the turn of the 21st century, China’s spending on welfare provision has grown remarkably. Through a comparative study of the public housing provision programmes in two districts within the same municipality, this paper explores models of fiscally oriented public housing provision and their underlying driving forces. Drawing on data from archives, interviews and intensive fieldwork conducted in south-west China from 2014 to 2018, we identify two prominent public housing models: the entrepreneurial model and the extractive model. We propose that the choice of different welfare provision approaches is linked to local fiscal pressures and the target responsibility system. This paper sheds light on the structure of political incentives within China’s local governments in relation to public service provision and explores how local leaders improve public welfare in a non-Western setting.

Affordable housing · China · entrepreneurship model · public housing provision · public service delivery · social spending · target responsibility system · welfare state retrenchment · China's Socioeconomic Reforms and Governance · Local Government Finance and Decentralization · Social Policy and Reform Studies

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