What is land allocation in China?

Answer 1

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.