China issued a directive Friday that aims to promote renovation of the substandard dwellings in the country's urban areas and at state-owned factories and mines, in a move to improve the livelihood of low-income people.

Renovation of squatter homes in cities and at state-owned factories should be completed in the next fives years, according to the directive posted by the Ministry of Housing and Urban-Rural Development on its website.

Priority should be given to "the shanty towns covering large areas and with severe safety defects," according to the ministry.

It also urged relevant departments to give full respect to the rights and interests of the people living in substandard dwellings, who are mainly low-income laid-off workers, and to ensure that renovating work be conducted in an open and fair way.

The directive put forward multiple ways to finance the renovation work, including government funds, favorable loans from financial institutions, and tax rebates.

By the end of 2008, China had 11.48 million families living in substandard housing, 7.44 million of which lived in cities, 2.38 million near state-owned plants and mines, 1.66 million in forest zones and reclamation areas.

(Xinhua News Agency January 9, 2010)