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What are land use rights in China?

Updated: 12/20/2022
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Zhongzhigao

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16y ago

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In China, land use rights are the rights for natural persons, legal persons or other organizations to use land rights for a fixed period of time. China adopts dual land tenure system under which land ownership is independent of land use rights. The land is either owned by the state ("State Land") or by rural collective economic organization ("Collective Land"). The term of land use rights varies depending on different land use purpose. For example, if a piece of state land is used for industrial purpose, the term is 50 years while if it is used for residential purpose, the term is 70 years. More specifically, the term of rights to use State Land is: (1) 70 years for residential use; (2) 50 years for industrial use; (3) 50 years for educational, scientific and technological, health, and athletic use; (4) 40 years for business, tourist, and recreational use; and (5) 50 years for multiple purpose use or other uses. The term of rights to use collective land for cultivation or similar purpose is: The term for cultivated land is 30 years, for grassland it is from 30 to 50 years, and for forest land it is from 30 to 70 years. The term for special woods may be longer, subject to approval from the government authority in charge of forestry. No Chinese law defines the term of farmers' residential use of collective land.

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What are allocated land use rights in China?

In China, allocated land use rights mean the rights allocated by the government to land users to use land free of charge. In some events, land users are required to pay fees amounting to the site use fee. For allocated land use rights, government does not set the fixed term of land use. But it also means that the government has the right to recover land use rights at any time.


What is land allocation in China?

Land allocation is one of methods for land users to acquire land use rights from the government at the first tier market of land. As a general rule land users are not required to pay any fees to the government to acquire land use rights by allocation. But exceptions to the general exist, i.e., under certain circumstances land users are required to pay fees amounting to the site use fee. Unlike granted land use rights, the government does not set a fixed term for allocated land use rights. However, the government reserves the right to recover land use rights at any time. Historically, most land use rights were allocated to land users at no cost in China. Currently land use rights are only allocated for projects involving public interest such as military facilities or government buildings.


Who are granted land use rights in China?

In China, granted land use rights are the rights to use state land for a fixed period of time, which are granted by the government to land users. Generally, land users enter into land grant contracts with the government authority in charge of land, and pays land grant premiums in exchange for land use rights on state land for a fixed period of time. The maximum term of land grant is determined based on its use. For example, the term for residential use is 70 years while the term for industrial use is 50 years. Chinese law requires that all land use rights for commercial use must be granted by bidding, auction or quotation on the open market.


Who has the right to use state land in China?

The right to use the state land is also called the land use right, which means land users have the rights to use the state land for a fixed period of time. Chinese law states that natural persons, legal persons or other organizations may acquire land use rights. So from the legal perspective, even a foreign natural person, legal person or other organization may acquire land use rights in China. However, Chinese law and regulation do impose more restrictions on foreigners when they try to acquire land use rights. For example, business existence is a prerequisite for a foreign entity or individual to purchase real estate in China for non-personal use. In other words, the entity or individual must first establish a foreign invested enterprise and then conduct business as designated in the business scope. Obviously, the requirement for business existence is to control foreign investment in Chinese real estate industry and regulate the price of real estate.


What is the system of land use control in China?

What is the system of land use control? China is one of the most populated countries in the world. Until September 2006, per capita cultivated land is 1.4 mu (1 ha=15 mu). This means that China has to feed on 1.3 billion population (about 20% of population of world) with the agricultural production of 7% of the land of world. Worse, as China is emerging a new industrialized country, more and more cultivated land is converted to the construction of office buildings, industry complex, condominiums or infrastructure. Another side product of industrialization is the deterioration of environment and this further reduces cultivated land. In order to control the reduction of cultivated land, China adopts the system of land use control. In China, land is categorized as agricultural land, construction land or unused land for different uses from the use purpose of standpoint. Agricultural land means land that may directly be used for agricultural purposes, which includes cultivated land, forest land, grassland, land for water irrigation and land for aquatic cultivation. Construction land means land that may be used to construct buildings, which includes land for construction of urban and rural housing and public facilities, land for mining, land for traffic and water irrigation facilities, land for tourism and land for military facilities. Unused land means land that has not yet been used for agriculture or construction. Further, land for construction is categorized as collective construction land and state construction land. If the land user wants to change the land use purpose, for example, from agricultural land to construction land, approval from government authorities is required.

Related questions

What are allocated land use rights in China?

In China, allocated land use rights mean the rights allocated by the government to land users to use land free of charge. In some events, land users are required to pay fees amounting to the site use fee. For allocated land use rights, government does not set the fixed term of land use. But it also means that the government has the right to recover land use rights at any time.


What is land allocation in China?

Land allocation is one of methods for land users to acquire land use rights from the government at the first tier market of land. As a general rule land users are not required to pay any fees to the government to acquire land use rights by allocation. But exceptions to the general exist, i.e., under certain circumstances land users are required to pay fees amounting to the site use fee. Unlike granted land use rights, the government does not set a fixed term for allocated land use rights. However, the government reserves the right to recover land use rights at any time. Historically, most land use rights were allocated to land users at no cost in China. Currently land use rights are only allocated for projects involving public interest such as military facilities or government buildings.


Can land users continue to enjoy land use rights after they expire in China?

In China it depends on the purpose for which the land is being used. For residential use, after the term of residential land use rights expires, it will be automatically extended. For non-residential use, when the term of land use rights specified in the land grant contract is due to expire, if land users need to continue to use the land, they are required to apply for an extension of the term no later than 1 year prior to the expiration; unless the land needs to be recovered for public interest, the application must be approved. When the term of land use rights expires, if land users fail to apply for an extension of land use rights, or its extension is disapproved, the land use rights will be recovered by state without any compensation.


What certificates are issued after the real property rights are registered in China?

The certificates regarding land are: Certificate for Use of State Land, Certificate for Ownership of Collective Land, Certificate for Use of Collective Land and Certificate for Third Party Rights. State land use rights for construction and state land use rights for agriculture are recorded in the Certificate for Use of State Land. Collective land use rights for construction, land use rights for residence and collective land use rights for agriculture are recorded in the Certificate for Use of Collective Land. The mortgage and servitude may be recorded in the Certificate for Third Party Rights. The certificates regarding housing are: Certificate for Housing Ownership and Certificate for Third Party Rights.


What is the second tier market for land in China?

China adopts dual land tenure system, i.e., land ownership is independent of land use rights. All land in China is either owned by the state or rural collective economic organizations. Natural persons, legal persons or other organizations may only acquire land use rights. The first tier market of land refers to the market on which the government on behalf of the state grants, allocates or leases land use rights to land users. In China, only the land use right in state land can be transacted in the first tier market. In other words, except for few pilot projects, the land use right in collective land may not be transacted at the first tier market. After acquiring land user rights at the first tier market from the government, land users are permitted to further transfer land use rights to other land users if certain requirements are met. The market on which land use rights are transacted among land users is the second tier market of land.


What is the first tier market for land in China?

China adopts dual land tenure system, i.e., land ownership is independent of land use rights. All land in China is either owned by the state or rural collective economic organizations. Natural persons, legal persons or other organizations may only acquire land use rights. The first tier market of land refers to the market on which the government on behalf of the state grants, allocates or leases land use rights to land users. In China, only the land use right in state land can be transacted in the first tier market. In other words, except for few pilot projects, the land use right in collective land may not be transacted at the first tier market. After acquiring land user rights at the first tier market from the government, land users are permitted to further transfer land use rights to other land users if certain requirements are met. The market on which land use rights are transacted among land users is the second tier market of land.


Who are granted land use rights in China?

In China, granted land use rights are the rights to use state land for a fixed period of time, which are granted by the government to land users. Generally, land users enter into land grant contracts with the government authority in charge of land, and pays land grant premiums in exchange for land use rights on state land for a fixed period of time. The maximum term of land grant is determined based on its use. For example, the term for residential use is 70 years while the term for industrial use is 50 years. Chinese law requires that all land use rights for commercial use must be granted by bidding, auction or quotation on the open market.


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What is a land grant in China?

In China, land grant is the process during which land users enter into land grant contracts with the government authority in charge of land, and pays land grant premiums in exchange for land use rights on state land for a fixed period of time. Chinese law requires that all land use rights for commercial use must be granted by bidding, auction or quotation on the open market.


China's land use?

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Who has the right to use state land in China?

The right to use the state land is also called the land use right, which means land users have the rights to use the state land for a fixed period of time. Chinese law states that natural persons, legal persons or other organizations may acquire land use rights. So from the legal perspective, even a foreign natural person, legal person or other organization may acquire land use rights in China. However, Chinese law and regulation do impose more restrictions on foreigners when they try to acquire land use rights. For example, business existence is a prerequisite for a foreign entity or individual to purchase real estate in China for non-personal use. In other words, the entity or individual must first establish a foreign invested enterprise and then conduct business as designated in the business scope. Obviously, the requirement for business existence is to control foreign investment in Chinese real estate industry and regulate the price of real estate.


How do people use the land in the country china?

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