Housing provision in a socialist country is generally characterised by
the dominance of public housing, However, provision of public housing
is a complicated process, which involves various social agencies, In
the case of China, the simple notion of 'state provision' covers huge
differences between municipally-managed and work-unit housing, The lac
k of understanding in the structure of public housing provision has le
d to unsuccessful efforts in promoting the 'commercialisation' of hous
ing in recent years, This paper, adopting a perspective of structure o
f housing provision (SHP), attempts to examine the changes in public-s
ector housing in China and to reveal the critical role of state work-u
nits in the SHP, Housing reform has led to some significant changes in
the SHP, The transformation, however, is far from a process of commer
cialisation or privatisation of public housing stock, On the productio
n side, work-units do withdraw themselves from direct involvement in h
ousing construction, However, on the consumption side, the low incomes
of state workers, due to the political economy, have forced the work-
unit system to remain as an indispensable part of the SHP, The increas
ing role played by state work-units shows the contradiction embedded i
n a socialist market economy-i.e. the reproduction of labour through m
arket mechanisms and the persistence of public ownership of production
, The changes certainly have profound implications for the nation's ur
ban development and urban spatial structure.