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March 9th, 2011 China says it will spend almost $200 billion this year to build 10 million low-cost homes. The plan to increase the amount of affordable housing is intended to help offset rapidly rising housing costs and a rising disparity in living conditions between rich and poor people in China. Qi Ji, a deputy housing minister, told reporters Wednesday that the central and local governments will pay for more than one-third of the new homes to be built this year. Public institutions and businesses will finance the rest. Qi said local governments should use money raised through land sales and bond issues to help finance the affordable housing drive. China aims to build 36 million low-cost homes by 2015. Housing costs in Beijing have risen by 6.8 percent in the past year despite government efforts to hold prices down. Posted in: East Asia Pacific Source: VOA news