Latest Regulations Relating to the Provisions on Grant of State-owned Construction Leaseholds
November 30, 2007 | BY
clpstaff &clp articles &The Provisions further regulates the regime over the increasingly popular construction leasehold granting through bidding, auction or listing.
By Guillaume Rougier-Brierre and Zhou Bi Qing of Gide Loyrette Nouel
In August 2006, Decision No. 31 was adopted by the State Council. Aimed at strengthening the control of land for specified usage the legislation imposed mandatory bidding, auction or listing procedures on land use rights for industrial use. Prior to this, such mandatory procedures merely applied to the granting of land use rights for commercial, entertainment, tourism and residential purposes only under Decree No. 11. The introduction of land for industrial use into the bidding, auction and listing system was further reinforced when the National People's Congress passed the Property Law which came into force on October 1 2007.
Accordingly, Decree No. 11 was amended to reflect both changed provisions for bidding, auction and listing, and other newly-adopted concepts, in the Property Law(物权法). This was achieved through the promulgation of Decree No. 39 by the Ministry of Land and Resources on September 28 2007.
LAND OWNERSHIP AND LAND USE RIGHTS
Previously, China's legal regime had been unable to fully regulate property rights or accommodate property related projects in China. Before the passing of the Property Law, many of the relevant rights and issues were addressed in a piecemeal manner by miscellaneous national laws and administrative regulations. The Property Law, which regulates both public and private property rights, now reinforces the concept that all land in China is publicly owned. Depending on location, land remains owned either by the state or by rural collective organizations or villages. As such, private investors do not have access to land ownership in China.
However, private investment in Chinese real estate has been possible since 1988, when the PRC Constitution was amended to allow investors to acquire "land use rights" over real properties owned by the state or rural collective organizations or villages. Land use rights
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