The title of the document is “China’s affordable housing dilemma”. In China, housing reform was started in 1979. The opening up of the market through these reforms produced some dilemmas, which have been discussed in this paper. The most intense period of housing reform was from 1988-1994. Urban property rights were established with 70-year leases. The new framework resulted in rising of the domestic and foreign private property developer industry. In 1994, reforms for affordable housing were introduced, which required that each municipality would ensure that 20% of new housing stock would be affordable. The absence of conventional slums and informal squatter areas associated with most developing cities was considered as a substantial achievement for China.