1991: The first law relating to demolitions in cities is enacted. It mainly targets old and shabby dwellings in a bid to improve housing conditions and leads to very little conflict.

1994: A new policy on urban housing reform that encourages real estate development is declared. Real estate developers, instead of local governments and "work units", become increasingly important providers of housing. Profound tax reforms are introduced in favor of the central government, which now shares 75 percent of value-added tax and 60 percent of corporate income tax. Local governments begin to increasingly rely on revenue from land sales.

2001: The regulations relating to demolitions in cities are revised, but still allow developers to carry out forced demolitions. Local governments are authorized to enforce demolitions.