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Tianjin Property Insight - September 2014

China needs more strong towns
The Strong Towns Movement was started by Charles Marohn in the US and advocates that American cities do not sacrifice financial viability for short-term economic gains. Mr. Marohn, in an episode of the EconTalk podcast in May, said, “I think at the end of the day, a strong town is one that can pay its bills and is not reliant on others for its own future. So many cities around the country today are completely dependent on aid from other places, from revenue from outside the city, in order just to make ends meet. And a strong town is one that is completely in control of its own future.” Like in the US, in China, many of the cities do not meet the criteria to be called a strong town. However, this could change if local governments would focus on becoming service providers instead of real estate developers.

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