Recent events in Dachong draw our attention to how news coverage and debate about Shenzhen urban renovation projects focus on conflicts between the real estate developers and urban villages, effectively rendering invisible the growing lack of affordable housing for Shenzhen’s migrant workers.

Shenzhen’s mandatory urban renovation plans benefit developers and the government because villages must negotiate a transfer of land use rights. This means that even though compensation packages enrich villagers, long-term, successful project developers and the municipal government end up making more. In this sense, villager complaints that they have been underpaid have a certain legitimacy.  However, in return for their landuse rights, villagers receive compensation packages that include standardized reimbursement for extant housing, moving costs, and compensation for loss of livelihood. Villagers with multiple holdings and savvy negotiating skills become very rich; published reports indicate that as a result of development, Dachong villagers have joined the ranks of millionaires and several are now billionaires.

Huarun (China Resources)  has been negotiating with Dachong since March 2009. Indeed, banners calling for early decisions to sign transfer contracts were draped throughout Dachong and construction walls have been painted with slogans that sing the benefits of urban village  renovation. A sample — Scientific urban planning, collective transformation; Harmonious renovation, civilized relocation. New Dachong, New Life, New Development.

Nevertheless, as of April 15, there were still ten holdouts. The Dachong Stock Holding Corporation wrote an open letter to those holdouts, asking them to sign contracts immediately. A translation of the letter: Continue reading →