China tightens land-use rules
October 01, 2006 | BY
clpstaffOn September 7 2006, the State Council and Ministry of Land announced new rules to control land. These include increased compensation for evicted residents…
On September 7 2006, the State Council and Ministry of Land announced new rules to control land. These include increased compensation for evicted residents and a requirement for more land to be sold through auctions. The eight-point plan is part of the Chinese government's plan to curb property speculation and over-investment in the property sector.
The central government has existing rules to manage land use, but they have been largely ignored by local governments due to the revenues that land sales generate and the opportunities for corruption.
Directives contained in the plan warn local governments that they must bear responsibility for the protection of farmland and seek approval from the State Council and Ministry of Land before converting farmland for other uses. The directives further provide that farmers evicted from their land must be offered job training and social security benefits to maintain their same standard of living.
Land-use fees for new constructions projects will double, while those for urban land will triple. To improve transparency, the funds derived from land sales are now required to be reported in local government budgets, which will allow better supervision.
To enforce the rules, the government says it will intensify inspections and punish local officials and governments which violate them.
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