Cai Jiming: Nationwide research is in the beginning phase. We have visited the places like Songzhuang, the Tianjin development zone, Xinxiang and Anyang cities in Henan province. We have formed several research guidelines: first, we define our research scope on the minor property rights houses built on the legal rural housing land. That’s because this action is the most reasonable despite being against the government regulations. In fact, the constitution and property law don’t limit it.

The Economic Observer: So its like a private plot of land. The peasant can plant what they want, do what they want, including building a house?

Cai Jiming: It is legal and reasonable to build a residential house on the private land. It’s not a factory or an underground workshop.

The Economic Observer: But isn’t there a limit to the legality here—if I build a house on my land and sell it, can I apply to build another residential plot?

Cai Jiming: It’s not allowed. According to the land administration law, the peasant can only apply for residential land once. And the new State Council regulation points out if the peasants sell their houses and the land, they cannot apply for more land. We intend to focus on this area. The second principle is to respect reality. By this I mean by how much is the government undercutting the market, and if the government wants to dismantle a house, how will people be concretely affected? What are the negative externalities of its actions? The third principle is the reasoning behind its actions. Is the government accountable? Does the government lose control of supervision? If the government doesn’t fulfill its duties, it should assume responsibility for that. Last, why are minor property rights houses so hot in the market?  M