Land use

In China, urban land is State property. Lands in rural and suburban areas are collective property except for those that are legalized as State property. The State has the right to implement a practice of land use purchase in addition to grant State-owned land use right in accordance with the law. Foreign-invested enterprises are permitted to purchase the land use right for a certain period.

Foreign-invested enterprises acquire the land use right through requested application procedures and fulfillment of payment. The land use right can be purchased by one of three means: contract, bidding and auction. Any land purchased by such means can be transferred, subleased and secured as agreed in the contract on condition that all the required application, permission, registration and taxation are completed by the competent authorities according to the law.

The current regulation prescribes a maximum land use duration of 70 years for residential purpose; 50 years for industry, education, technology, culture, hygiene and sports; 40 years for commerce, tourism and entertainment; and 50 years for comprehensive functions or other uses. When the land use right expires, the assignee can apply for renewal except that it is otherwise conditioned in the contract or it is in conflict with the city planning. Foreign-invested enterprises can also legally obtain land use right through methods such as transfer and lease.