Ever since China opened up to the world in 1980's, the Shanghai Municipal Government, led by the Communist Party of China and the State Council, makes great effort to build the city into an international economic, financial, trade and shipping center. With the cooperation and hardwork of Shanghai people, the city is progressing to its goal as a global metropolitan. The new team of leaders of the Shanghai government took office in February 2003. "The power of the government is entrusted by the people; the interest of people is above all," as Shanghai Mayor Han Zheng promise in his inaugural. Guided by the Shanghai Party Committee, the city's new leadership vows to strictly perform its official duties; to make significant progress in self-improvement, and to intensify the shift of its role from administrative to public service. The Shanghai government will build itself into a service government that would share with the people all their happiness and troubles; a solid responsible government that is efficient, honest and diligent; a law-abiding government that respects legal system and rules strictly and impartially.

Shanghai will issue new regulations to restrict with economic measures "changing buildings for residential use to those for other purposes other than for residence"

07/07/2004

In "Regulations on Property Management of Residential Districts of Shanghai (draft)" (revised version) examined and approved at 11th session of the Standing Committee of People's Conference of Shanghai held on April 13th, there is a new regulation in articles concerning "changing buildings for residential use to those for other purposes other than for residence", i.e., the property management must not presumably change nature of the housing; at the same time, it is regulated that if any proprietor getting approval to change the nature of housing from residence to other purpose, he should pay property service fee ten times of the one in his residential district. Deducting cost of property services, the fee is used to supplement special maintenance fund of the housing. This means that Shanghai will adopt controlling and adjusting measures in economic lever to solve the issue of "changing buildings for residential use to those for other purposes other than for residence" that the public are concerned about.

Can people set up business in residential buildings? The annoying problem has always been a focus throughout the constitution course of "Regulations on Property Management of Residential Districts of Shanghai (draft)". No matter in discussion of standing committee session, taking council with the public, or in holding hearings, there are two opposite opinions concerning the issue of "changing buildings for residential use to those for purposes other than residence". One group hold that presumably changing nature of residential buildings should be strictly prohibited. Because if non-residence situation is intermingled in residential buildings, it will not only impose many risks in respect to security to residents, but also aggravate depreciation of equipment. While the other group said that in the course of reform, there are indeed some laid-off workers who have to make a living by means of their place, and changing the property nature involves life guarantee of relevant people and such social problems of non-formal employment. They suggested the government to loose relevant policy and add some restricting conditions.

In the course of revising the regulation, a lot of people imposed the question: who is pleased to see a sign board of "Welcome" on returning home every day from work? Who is to responsible for murder cases as a result of miscellaneous persons going in and out of the residential buildings? They pointed out that it is a very small amount of people who have to be self-employed in the buildings, and it is not suggestible to have majority to accommodate to the interest of minority in government's formulating rules and regulations.

It is reported that group forbidding "changing buildings for residential use to those for other purposes other than for residence" get the upper hand in the standing committee. On this account, on revising the draft, the principle of forbidding "changing buildings for residential use to those for other purposes other than for residence" is maintained, and it has been made clear that in order to keep seriousness of urban planning and maintain living environment of the public, presumably changing the nature of residential buildings should be prohibited.

In the light that reason for the phenomenon of "changing buildings for residential use to those for other purposes other than for residence" is that cost is quite low in doing business in residential buildings, economic levers are added to controlling and adjusting measures in the revised version of the draft, i.e., property service fee which is as high as ten times of the one for residence use should be paid for the approved behavior of "changing buildings for residential use to those for other purposes other than for residence". As for legal liabilities, the behavior of presumably changing property nature will be imposed severe punishment: who will be ordered to correct within a time limit by real estate administrative departments on district or county level and will be imposed a fine of 10,000 to 50,000 RMB.

The Shanghai government 2006