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Chinese slum demolitions reveal government debt strains

A massive scheme to demolish nearly 25m homes in designated “slum” areas in China — forcing the relocation of some 100m people over the past four years — is straining local government finances amid a downturn in land sales.

Residents of Qiangbei village in the central Chinese city of Jiaozuo say the government has been destroying homes without compensating those evicted with new housing or money. 

“The national policy is to build relocation housing before demolition, but here it’s the opposite way around,” said Zhang Xiaoqin, a 49-year-old farmer who was collecting the last items from her two-storey village house ahead of demolition. 

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