It promises to create a budget crisis at the city and county level since these entities now face a cash expense they can no longer ignore.

FORBES: Beware Of Sudden Interest Rate Spike

Local-level voting for city and county posts would be the ideal solution, so that residents could balance the costs and benefits of regulation.

WSJ: Review & Outlook: What's in China's Water?

China has more than 1, 000 county-level governments and hundreds of city and municipal councils that rely on revenue from local taxes, land sales and central-government transfers because rules bar most from selling bonds.

FORBES: China's Cities Take Steps To Stimulate Home Purchases