The Chinese government has announced plans to restrict the construction of villas, golf courses, and other luxurious projects in an effort to protect the environment and curb wasteful investment.
These restrictions are part of a list of objectives set forth by a cabinet agency that requires local officials to promote promising industries like telecommunications while limiting business activities that waste energy and other resources.
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Restricting construction to contribute to environmental protection. In the image: A neighborhood in Shanghai viewed from above. |
At a press conference, Liu Zhi, Director of the Industrial Policy Department of the National Development and Reform Commission, stated that limiting construction is synonymous with curbing “unclear investments” and protecting the environment.
Leaders are seeking to rein in the construction boom, which they fear could lead to rising inflation, while also pushing China into a state of surplus with unnecessary shopping centers, extravagant homes, and other projects.
This could also pose a threat to banks if construction firms fail to repay their debts.
In recent years, the government has issued a series of bans on the construction of golf courses, warning that they are wasting scarce water resources and agricultural land.
