China tightens land-use rules

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.