Series on Chinese Economics Research - Vol. 12 Game The Segmentation, Implementation and Protection of Land Rights in China ZHANG Shuguang Chinese Academy of Social Sciences, China Unirule Institute of Economics, China yp World Scientific NEW JERSEY LONDON SINGAPORE BEIJING SHANGHAI HONGKONG TAIPEI CHENNAI TOKYO
Contents Preface Foreword v xix Chapter 1 Implementation and Protection of Land Property Rights in the Context of Urbanization 1 1. Introduction 1 2. Current Land Policies and Their Implementation: Results and Evaluation 4 2.1. Evolution of land policies 4 2.1.1. Policies concerning land in rural areas 4 2.1.2. Policies of conversion of land in rural areas 7 2.2. Structure of the land regime 13 2.3. Results of Implementation of land policies 16 2.3.1. Infringement upon and protection of farmers' land rights 16 2.3.2. Conflicts over policy goals and competing interests of central and local governments 19 2.3.3. Conflicts between the protection of cultivated land and urbanization 23 2.3.4. Two ways of conversion of land in rural areas and development trends 25 3. Local Experiences and Policy Innovation: Cases and Analysis 27 3.1. Brief introduction 27 xxi
xxii Contents 3.2. The model of land-centered rural industrialization in Nanhai of Guangdong Province 3.3. Real-estate compensation and property rights exchanges in the development zone of Dezhou, Shandong Province 3.4. Three kinds of farmer cooperatives in Kunshan, Jiangsu Province 3.4.1. Fumin cooperatives 3.4.2. Community stock cooperatives 3.4.3. Land stock cooperatives 3.5. Communal enterprises of Dongsandao in Haicheng, Liaoning Province 3.5.1. Market expansion is the basic inducement to land policy innovations 3.5.2. Farmer Cooperation is necessary if farmers are able to play a dominant role in the price system for land 3.5.3. In rural communities, an efficient communal enterprise is important for the success of rural industrialization on its own 3.6. Summary 4. Suggestions on Policy Improvement and Law Amendment 4.1. Uniform land laws should be formulated in order to terminale the dual systems of land policies 4.1.1. The principle of 'same land, same status, same value' under the prerequisite of public ownership should be implemented 4.1.2. Land laws shall be modified to establish a systematic basis for the protection of land rights for farmers 4.1.3. Local and grassroots experiences should be reviewed and attempts made to Upgrade local rules and regulations governing transfers of collective construction land into State laws 29 32 36 37 38 40 43 46 47 47 48 49 49 49 49 51
Contents xxiii 4.2. Governments' monopoly in the primary land market should be broken to protect land rights and interests of farmers and collectives 53 4.2.1. The current land requisition policies should be reformed fundamentally to stave off the trend of nationalization of construction land 53 4.2.2. The current system of land supply by governments should be reformed and collective construction land should be allowed to directly enter the land market 54 4.2.3. Infringement upon farmers' rights in the construction of village residential sites should be prevented and commercialization of the sites should be promoted 55 4.2.4. A 'requisition black list' should be made to ensure that land to be used for the purposes other than public benefits shall not be obtained through requisition 57 4.2.5. Governments' land reserves should be confined to existing levels and it should be strictly forbidden to requisition collectively-owned land to add to land reserves 58 4.3. The fiscal structure should be changed and local property tax should be levied 59 4.3.1. The mechanism of revenue collection should be changed to eliminate incentives of local governments in land requisition and sale 59 4.3.2. Incremental gains from land should be distributed in a reasonable way and the system of land property taxes should be improved 59 4.3.3. Measures of including in the budget the revenue from land remise should be set up as soon as possible, which may serve as an Interim mechanism for establishing the system of property taxes later on 60
xxiv Contents 4.3.4. Fiscal regime should be upgraded so as to match financial power with administrative responsibilities 4.4. Farmers whose land is requisitioned should be allowed to negotiate for compensation and proper measures should be set up 4.4.1. Actual compensation should be decided upon through negotiation with the comprehensive Standard of a region (district) as the reference 4.4.2. Land for development should be retainable and property compensation should be implemented 4.4.3. The practice of exchanging social security for land should be scrutinized to prevent any covert infringement on farmers' land 4.5. The effectiveness of quota management and institutional arrangement for protecting cultivated land 4.5.1. The current quota administration is basically of no effect because of easy evasion by local governments at various levels 4.5.2. The trade in quotas should be accepted and a mechanism for it should be established 4.5.3. Regional zoning for industrial development should be set up in a scientific way and a mechanism of food security be established Bibliography 61 62 62 62 63 64 64 65 66 66 Chapter 2 Implementation and Protection of Property Rights in Collective Construction Land Involving the Issue of "Sub-Rights" Rural Housing 67 1. Introduction and Definition 2. Transition and Analysis of Collective Construction Land System: Based on Rural Homestead 2.1. Process description on the transition of rural homestead 68 70 70
Contents xxv 2.2. Analysis on the rural homestead system and its advantages and disadvantages 77 3. Methods and Effects of the Government's Management and Law Enforcement on Collective Construction Land 82 3.1. Forcibly removing illegal cottages in Qinglongtou, Beijing 83 3.2. Rise of painters' village and property disputes in Songzhuang, Beijing 87 4. Worrying Signs in the Comprehensive Reform Experiment of Overall Flanning for Urban and Rural Construction Lands: Is the Homestead Exchange for House a Breakthrough? 92 4.1. Blocking of govemment-led overall planning of urban and rural areas in Jiulongpo District, Chongqing City 93 4.2. The comprehensive supplementary reform in Huaming demonstration town in Tianjin led and financed by governments 96 4.3. Comment on govemment-led overall development experiment of urban and rural areas 100 5. Innovations and Experiments by Farmers, Collectives and Local Governments 103 5.1. The land capitalization in Zhenggezhuang Village of Beijing with farmers as main players 103 5.2. A game over land property rights between villagers and the government in the project of "urban villages", Shenzhen 108 5.2.1. Formation stage of urban villages 109 5.2.2. Shaping stage of urban villages 112 5.2.3. Comprehensive reconstruction stage of urban villages 115 5.3. Several discussions 116 6. The "Sub-Right" Houses: Contention and Implementation of Property and Development Rights of Farmers 118 6.1. Definition and scope of sub-right houses 118 6.2. Type and development pattern of sub-right houses 119
xxvi Contents 6.3. Contention over sub-right houses 120 6.4. Analysis on the ability to exercise property right in the perspective of the development of sub-right houses 123 7. Way to Go in the Reform and Policy Suggestions 127 7.1. Urgency of current problems 127 7.2. Way to go 127 7.3. Fundamental way and specific method for Implementation and protection of basic farmland 128 7.4. Reform fiscal and tax system, eliminate the revenue source from land financing 132 7.5. Implement the permanent status in farmers' land contract rights and ensure farmers' rights in land ownership, use and future gains 133 7.6. Deepen the marketization reform of rural collective construction land and establish urban-rural land market 133 8. Revision of Related Laws 136 Bibliography 136 Chapter 3 Land Transfer and Agricultural Modernization 139 1. Introduction 140 2. Evolution and Characteristics of Policies over Land Transfer and Large-Scale Management 141 2.1. Evolution of policies of land transfer and large-scale management 141 2.2. Phasic characteristics and regional difference of land transfer and Scale management 146 3. Cases on Land Transfer and Scale Management 151 3.1. Case in Tongzhou District of Beijing 151 3.1.1. Land transfer and scale management in Qianfu Village of Yujiawu Town 151 3.1.2. Land cooperative in Aoxiaoying Village of Yongledian Town 155
Contents xxvii 3.2. Organic vegetable specialized cooperative in Zhenglong Village, Jiangji Town, Ningyang County, Shandong Province 156 3.2.1. Land share cooperative in Zhenglong Village 157 3.2.2. Management pattern of the cooperative in Zhenglong Village 159 3.3. Case of western flower world in Lingyun Village, Xinminchang Town, Pixian County, Chengdu City 161 3.3.1. Lay the foundation for industrialization of agriculture by implementing land consolidation 161 3.3.2. Large-scale land transfer creates institutional conditions for agriculture modernization 162 3.3.3. Modem agriculture management of Senhe Company 163 3.4. Case of High-Tech Modem Agricultural Industry Park in Qiquan Town, Chongzhou City, Chengdu 165 3.4.1. Promote large-scale land transfer and develop new Organization for economic Cooperation 166 3.4.2. Establish new agriculture Service system and develop the service before, during and after the agricultural production 167 3.4.3. Establish specialist house and science and technology center for commercializing research findings; implement agricultural standardization production and industrialization management 171 3.5. Case of scale planting of Sichuan Chongzhou Grain and Oil Reserve LLC 172 4. Land Transfer, Organizational Transition and Agricultural Modernization: Analysis and Discussion Based on Cases 174 4.1. Business crisis facing traditional agriculture 174 4.2. Land transfer and moderate scale management becoming the premise of agricultural modernization 176
xxviii Contents 4.3. Great changes caused by land transfer and scale management 181 4.4. Choices over pattems of land transfer and scale management 185 4.5. Roles of the governments and collective economic organizations in land transfer and scale management 189 4.6. Land transfer versus quota transaction 193 4.7. Financing land transfer and development of rural finance 195 5. Policy Suggestions 198 Bibliography 203 Appendix: Thesis Seminar: Land System Reform of China 205 Afterword 283 Index 287