Central Committee of the Communist Party of China, Decision on Several Major Issues Concerning the Promotion of Rural Reform and Development

Adopted: October 12 2008

Main Contents: Farmers are allowed to circulate contracted management rights in land in the form of subcontracting, leasing, exchange, transfer or share co-operation under the principles of lawfulness, voluntariness and compensation. The circulation of contracted management rights in land may not change the nature of collective land ownership, land use or harm the rights and interests of the land contracting of farmers. A unified urban and rural construction land exchange shall gradually be established. For construction land for commercial use converted from rural collective land in accordance with the law, the leaseholds thereof must be assigned in an open and compliant manner through a unified tangible land exchange and such land shall enjoy the same rights and interests as state-owned land provided that it is in compliance with the planning. In addition, new types of rural financial institutions and regional small and medium-sized banks that mainly serve rural areas shall be developed and regulated. Small rural financial institutions are permitted to borrow funds from other financial institutions. The rural insurance business shall also be developed (Section Three).