This month a Shanghai banking regulator disclosed that the Ministry of Finance is drafting rules to control the financing subsidiaries of local governments.

FORBES

Administration officials said they didn't hew closely to the existing emergency plan, because they found some of it impractical, including complex rules outlining how local governments should ask for help.

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The central government also said it would reform its local residency system, and that has enabled local governments to offer easier residency rules for out-of-town buyers.

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The analysis must include a discussion of when the county would take local governments to court over zoning rules.

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In doing so, it distorts precedent, it misapplies the relevant constitutional principles, it announces legal rules that will obstruct efforts by state and local governments to deal effectively with the growing resegregation of public schools, it threatens to substitute for present calm a disruptive round of race-related litigation.

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The need for such rules has also long been debated, but the central government has delayed taking action in the face of stiff resistance from local governments.

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