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Unification of the dual land use system can hardly be fulfilled in a short time. Alteration of the on-going system is as a matter of fact closely connected with the performance of the country’s corporation-based enterprise reform, which first of all has to deal with the basic issue of a state business entities’ property right. This requires that state-owned organisations be conferred the right to own and use state assets as independent business entities, with no further administrative influence being applied to them. However, this can only be brought about by implementing a full leasehold system of all land use rights.
Regulatory structure
The main rules regulating real estate business conducted by foreign investors are composed of two parts. First, the central government has provided several guiding principles, most notably the Interim Rules 1990 on Sale and Transfer of State Land’s Use Rights in Cities and Towns (the 1990 Interim Rules), and the Regulations 1990 on Development and Management of Tracts of Land by Foreign Investors (the 1990 Regulations). Secondly, local authorities have also promulgated some regional policies, oriented towards providing more incentives to foreign investors and are only applied in particular local jurisdictions.
The State Land Administration Bureau as the government-designated agency is the regulatory authority responsible for overall administration of the State’s land. All the land has to be registered and recorded by it. And the Bureau in turn issues a land registration certificate for entitlement of any specific use. No right can be acquired from the primary market or further traded on the secondary market unless the site concerned has been granted such a certificate. To obtain the right, foreign investors need to apply to the Bureau for approval. The Bureau in this sense plays the most momentous role in regulating foreign investment activity on both the primary and secondary market.
[Related Laws & Regulations]
Interim Regulations of the People’s Republic of China Concerning the Assignment and Transfer of the Right to the Use of the State-owned Land in the Urban Areas (Promulgated by Decree No. 55 of the State Council of the People’s Republic of China on 19th May, 1990 and effective as of the date of promulgation)
Land Administrative Law of the People’s Republic of China (Promulgated by the Standing Committee of National People Committee, effective as of 1st Jan. 1999)
Implementing Regulation for Land Administrative Law of the People’s Republic of China (Promulgated by the State Council, effective as of 1st Jan. 1999)
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