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China sLandAcquisitionLawanditsimpacts TejKumarKarkiLectureratXJT U PlanninglawandGovernance IndividualEssayIPlanningLaw ReviewtheurbanlandacquisitionlawofChinaandcriticallyevaluateitsstrengthsandweaknesses Whiledoingso drawevidencesandexamplesfromdetailedcasestudiesofatleasttwourbanlandacquisitionprojectsimplementedinChinesecities OutlineandMarkingSchemeUrbanlanddevelopmentchallenges 10 LandacquisitionlawofChina 10 Casestudies 30 Strengthsandweaknessesofthelaw 30 Conclusionsandpolicyimplications10References10 Instructions TotalmarksavailableforIndividualEssayIis100 50 ofthefinalmark OnlyanswersinEnglishareacceptedCourseworkmustbesubmittedbyNovember1 2013intheassignmentdrop inboxnolaterthan3 00p m Instructions FailuretodosowillbepenalizedaspertheUniversity spolicy Bothhardanddigitalcopiesshouldbesubmittedbeforethedeadline ThewordlimitfortheEssayis2 000wordsandtheessaysshouldbewritteninA4format Markingcriteria Plagiarism Plagiarism Landrequirement Fasturbanizationdemandslandforemploymentplacement housing andurbaninfrastructure Newurbanresidentsprojected Net10 15millionnewurbanresidentsannually Ding 2004b GrowthofnumberofcitiesinChina Li Zhou ChinaStatisticalYearbook1996and2000 Purposeoflandrequirement InfrastructureprojectsUrbanrenewalHousingdevelopmentReformofstate owned enterprisesaretakingplaceatanunprecedentedpaceandscale Everyyear4millionfarmersexpropriated LandUseRights LURs Leasingofpublic owned landinthecitiesandtownsbylocalgovernmentstousers Userscanthensell rent mortgage subleasetothirdparties Theusersarerequiredtopayup frontlandconveyancefeesthatdependuponleasingperiodsandlanduseintensity Ding 2003 Landacquisitionistheotheroption 1 conversionofruralcollectively ownedlandtostate ownedlandshalltakeplace2 Institutionalizingpowersoflocalgovernmentssothattheycan atlowcost expropriatelandfromfarmersandthensellittodevelopersatmuchhigherprices Localgovernmentearnmoneyforurbandevelopment Throughthisprocessofacquisitionandleasing localgovernmentsareabletoassemblelargeamountsofcashneededtofinanceurbandevelopment Forcedtosell Article10oftheChineseConstitutionstatesthat the statemay inthepublicinterest requisitionlandforitsuseinaccordancewiththelaw EminentDomain ED Zhengdi RegulationofPropertyTakingandCompensationonState OwnedLandinJanuary2011 Governmenthastheobligationtofairlycompensaterelocatedresidents witharequiredopeninformationandpublicparticipationprocess AcourthearingwillbeavailableforanyconflictarisingduringtherelocationprocessandthegovernmentnoLongerhastherighttoevictresidentswithoutacourtorder Ye 2011 Localgovernments ontheonehand havetofollowtheseregulations Chen 2008 Chen J 2008 China sDingZiHu TheUnitedState sKelo andSingapore sEnblocProcess ANewModelforEconomicDevelopmentEminentDomainfromagivenPerspective JournalofLandUse 24 1 In2004 Article13oftheChineseConstitutionwasamendedtogiveconstitutionalprotectiontoprivatepropertyrightsItprovidesthat t hestatemay forthepublicinterest expropriateortakeoverprivatepropertyofcitizensforpublicuse andpaycompensationinaccordancewiththelaw ThisprotectionisalsoechoedinArticle2oftheLandAdministrationLaw whichwasamendedaftertheaforementionedconstitutionalamendmentAcomparisonwiththelanguageoftheFifthAmendmentoftheUnitedStatesConstitution norshallprivatepropertybetakenforpublicuse withoutjustcompensation ChineseConstitutionmerelymentionscompensationwithoutanyrequirementthatitbejust 2007enactmentandimplementationofthePropertyLaw whichprovidesinArticle42that itisnecessarytomakecompensationfordemolishmentandrelocationaccordingtolawandsafeguardthelegitimaterightsandinterestsoftheownersoftherealpropertiesexpropriated asfortheexpropriationoftheindividuals residentialhouses itisnecessarytosafeguardthehousingconditionsoftheownersofthehousesexpropriated Forurbanhousing thelegalrequirementisthattheacquiringpartymustnegotiatewiththepropertyownertoreachanagreementastotheamountofcompensation locationofreplacementhousing andotherrelevantmatters Weaknessintheprovision However thisnotioniseasilydispelledbytheprovision whichallowstheacquiringpartytosimplyapplyforanadministrativedeterminationregardingtheacquisitionandthenproceedwiththeacquisitionwhennoprivateagreementcanbereachedwiththepropertyowner Whatisrevealingisthataftertheadministrativedeterminationhasbeenmade thepropertyowner sappealtoapeople scourtdoesnotsuspendoreventemporarilyhalttheacquisitionprocess Intruth t hereisnoway tochallengetheunderlyingevictionexante onlythecompensationamountexpost In1986 theLAL Itcontainedfourmaincomponents landcompensationresettlementsubsidiescompensationforyoungcropsAttachmentsonlandLaborresettlement FairCompensationchallenges LandAdministrationLaw1986 1998says Land use rightholderssuitablycompensated suitablycompensated isundefined Ding2007 Chan2003 Positiveeffect FiscalimpactIndustrialandeconomicdevelopment cheapandcost reducedrevenue freeaccesstoLURs TaxandemploymentMajorsourceoflandforurbanization Localgovernmentfinancing Landuseconveyancefeesrepresentonecomponentofthepubliclandleasingsystemthathasplayedanimportantroleinlocalgovernmentfinance LAthemainsourceofLandSupply Asurveyof16provincesrevealedthatlandacquisitionwasthemainsourceofthelandsupply Ina2 yearspanfrom2000to2001 75 2 47millionmuoutof3 27millionmu ofthelandusedforconstructionwasacquiredbythegovernment Morethan52 ofconstructiontookplaceoncultivatedland InvestigatingGroupofMLR 2003 Negative FairCompensationchallenges Rooij2007 Ding2007 6 Destructionofsocialcapital 1 5millionShanghaihouseholdswererelocatedbetween1992and19974 2millionsquarefeetofhousingweredemolishedHugelossofsocialcapital friendsandfamilies Wu 2000 Citedin CerveroandDay2010 Riseinpublicresentments 85 000protestsand3millionpeopleinvolveduntil2005 Rooij2007 66 oftheaffectedfarmersinChinaareunhappywithcompensation Zhuetal 2006 Courtcasesagainstlandacquisition 15 000courtcasesinBeijingin2001 zhengdi Zhou Zhou 2004 citedin Chan2006 Institutionalproblems Ifthereisaneed usethestate owned landevenifdoesnotservepublicinterest Althoughlandacquiredforbasicinfrastructurerepresentsthehighestpercentageofallacquisitions 52 ofallacquisitionsin2000 2001 Landacquiredforcommercialprojectsaccountedfor22 ofallacquisitionsin2000 2001 NegativeimpactsofflawsandambiguitiesofLA Despitethebenefitsofthepubliclandleasingsystemforlocalgovernmentfinancing flawsandambiguitieswithinthelegislationandimplementationoflandleasingpolicieshaveproducednegativeimpactsforvarioussectorsofsociety Publicinterest Itisdifficulttounderstandhowcommercialprojectscanbejustifiedasservingthepublicinterest Faircompensation Thevalueoflandandbesufficienttowarrantnon worse offlivingstandardsforfarmerswholoselandLALfailtogiveaclearandmeasurabledefinitionofnon worse offlivingstandardsAbsenceofconcreteguidelinesforjustcompensationoftenadhocandarbitrarydecisions LAL sInconsistentguidelines Compensationandresettlementsubsidies Article51statesthatdifferentstandardsandlevelsshallbeappliedformajorprojectsofnationalinterest Thispolicyenableslocalgovernmentstoexercisetheirpoliticalpowerstounder compensatefarmersfortheirland Farmer sinterests Thequestionsthatneedtobeaddressedistherightsandinterestsfarmershavewithregardtofarmland ThereisambiguityintheLALinthismatter Propertyrights Nocleardefinitionofpropertyrightsinthelawsgoverningfarmland villageorganization andfarmers Propertyrightsquestions whoisentitledtobenefitfromlanddevelopmentandatwhatportion Portionofcompensationisretainedineachpointwhenfundsweredistributeddownwardfromhigh levelgovernmentstolowones fromstatetoprovincetocitytocountytotownship respectively Ding 2004a Jobresettlements Localgovernmentsandlanduserstotakefullresponsibilityinjobresettlement leavingmanyaffectedfarmersunemployed AlthoughShanghaifoundjobsfor69 620farmerswhoselandwasrequisitionedin2000 2001 only9540farmers 13 7 receivedjobplacementservicesfromtheentitythatactuallyacquiredtheland Tomakemattersworse alargeportionofaffectedpopulationisaging Forinstance inZhejiangprovince onaverage 40 ofaffectedpopulationisover40yearsold Absenceofclearlegalrights Adhocdistributionofcashpaymentsreceivedbyfarmers JointInvestigatingGroupofMLR 2003c Mostlycashinsteadofjobresettlements AsurveyconductedbyMLRin2002of16provincesrevealsthatin60 80 ofthecases cashcompensationwasusedinsteadofjobresettlement TherateinZhejiangprovincewasevenhigher reaching94 1 Compensationwaybelowsocialsecuritypayment Hangzhou 60 000RMB personisrequiredforaminimummonthlysocialsecuritypayment thisis2 5timestheaveragelandacquisitioncompensationperperson Implementationdonotmatchconstitution ThoughboththeChineseConstitutionandtheLALrequirethatpeasants livesnotbeadverselyaffectedbylandacquisition implementationofthisrequirementisdifficult Hardlifeofunemployedfarmers Intheabsenceofequitablelandcompensationpolicies itishardforunemployedfarmerswithnolandtospendtheirtimesinmeaningfulways Disputesrelatedtolandacquisitionhavebecomethenumberonereasonformountingacourtappeal NearlyhalfofthecasesinFujianprovincein2001wererelatedtolandacquisition andZhejiangprovincehadanevenhigherpercentagein2000 2001 Landacquisitionhascreatedandintensifiedsocialtensionthathasquicklyspreadfromruraltourbanareas Wordsdonotmatchdeeds TheLALrequiresthatthequalityoflifeoffarmersshallnotbeadverselyaffectedbycompulsorylandacquisition butdoesnotspecifyconcretemeasurestoachievethisgoal Farmlandandfarmer sneeds Farmingdoesnotmakepeasantsrich butitgeneratessufficientincometosupportaminimumleveloflivelihoodandsecurity Withoutappropriatetrainingandskillsinmanagingtheirlumpsumpaymentandwithoutappropriateinvestmentchannels iftheircompensationissufficienttomakeanyinvestmentatall itiscommonforpeasantstoendupwithNolandtofarm noincomestreamtosupportthemselves andnojobskillstocompeteinthetighturbanjobmarkets Costofnewversusolddevelopment Itisestimatedthat200millionyuan US 24million isneededtodevelop1km2ofanindustrialzone Cao 2004 Tofullydevelopjust10 ofthesezonedareas 772billionRMB morethanUS 90billion isrequired Morethan1300km2havebeenreturnedtoagriculturaluse Cao 2004 Problemsofcompulsorypurchase eminentdomain Zhengdi PeopleareforcedtoselltheirlandNoscientificbasisforfaircompensationPublicresentmentisontheriseRiseinCourtcasesDestructionofsocialcapital CompromiseandResettlement Agenciesinvolvedonlandacquisition TheDistrictGovernmentStreetOfficeResidentCommittee Guangzhou newpoliciesestablished Requiredatwo roundpublicparticipationrequirementforanyredevelopmentprojectsOnceanareahasbeenidentifiedasurveywillbeadministeredtoaskallresidentswhoownproperties rentersexcluded whethertheyagreetoparticipateintheredevelopmentprogram Preparecommunityprofile Withtherequiredapprovalratemetbythesurvey thedistrictgovernment sredevelopmentoffice withthestreetofficeandresidentcommittees willthencollectacomprehensivecommunityandresidentialprofileoftheareaanddevelopadetailedtechnicalredevelopmentplantosubmittothemunicipalredevelopmentofficeforapproval Profilecontent LandconditionPropertyownershipResidentdemographicsPublicinfrastructureHistoricalsitesCompensationschemesforrelocationTheapprovedredevelopmentplanmadepublictoallresidents Secondsurvey Asecond roundsurveywillbeadministeredandanapprovalbyaminimumoftwo thirdsofallresidentsisrequiredtostarttheredevelopmentphase Itisexpectedthatsuchrequiredpublicparticipationprocesswillensurethetransparencyandequityoftheurbanredevelopmentprogram Redevelopmentofurbanvillages Allpropertiesinvillagesarecollectively

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