NPC deputy calls for removing time limit on land use rights

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NPC deputy calls for removing time limit on land use rights

The time limit on the urban land use right has long been regarded as a perplexing issue by many entrepreneurs and individual home owners. At the ongoing ‘Two Sessions’, a NPC deputy submitted a motion to challenge the current 'obscure' land tenure system in China.

Huang Zhiming, a NPC deputy and CEO of Hunan Wanjiali Group, put forth the motion to abolish the time limit on the land use right. According to him, once being passed, the policy change would benefit the state economy and facilitate establishment of lasting businesses and brands.
  
Two economic leaps spurred by land reform

In the view of Huang, China at the current stage is in grave need of long-lasting brands and enterprises. And permanent land tenure would be a prerequisite for reaching the goal.

“Looking back in history, we would find out the two major economic development periods since opening-up and reform were all set off  by land reforms,” said Huang, noting the first reform was launched at the beginning of China’s opening-up policy, which is called the Household Contract Responsibility System (农村家庭联产承包责任制) and it successfully rejuvenated the country’s rural economy.

The second reform was related to changes in the distribution of  state-owned land from administrative allocation to public bidding, and the move directly led to a boom in the property market. And Huang believes it was the strong market that bolstered the Chinese economy’s ‘golden decade’.
  
“Now, we have once again reached a point of transition,” he noted. It is known that under the current system, if enterprises or individuals aim to acquire land use rights (lease), they must accept a time limitation imposed on the land use which could be 70, 50, and 40 years respectively for buildings built on the land for residential, commercial and recreational purposes.

The policy means if a business failed to extend its lease when the time is up, it has to be relocated. For example, if an entrepreneur builds a business on a piece of land with a 30-year-old lease, the business could at most be entitled to run for 10 years on the premises.

“The policy no longer meets the demand of economic development,” said Huang, who considers land price should be included in the housing price. “And the time limit on land usage brings the government in competition with its people over the benefits.”

Recent years have witnessed many high-profile calls for giving permanent usage rights to city dwellers and business owners. However, according to Huang, some relevant laws and regulations are in the way.

So, the NPC deputy presented a motion to modify the laws and regulations for the initiative to be clear of legal barriers. “There is a long way to go,” said Huang.

@手机用户[Karamay, Xinjiang]
This is a real-sense deputy, who represents the voice of the public!

@英子_coco[Nanjing, Jiangsu]
Good advice. If the land tenure is so transient, long-lasting enterprises could hardly grow. Only when permanent usage right is granted, an entrepreneur could be fully devoted to his or her own business and pass it on to the next generation.

@光亮顶[Weifang, Shandong]
What the public really is concerned about is what we (common home owners) would do after 70 years?

@手机用户[Guangzhou, Guangdong]
The policy was promulgated so quickly, so how could the cancellation or abolition be so hard?

@手机用户[Shanghai]
The lease could be extended to 90 years but it should not be made permanent, or all the rich people nowadays would become permanent landlords. If a business owner could not even afford to buy a patch of land after 90 years’ operation, how could he be able to build a long-lasting shop? What a successful and long-lasting business needs is good reputation and not address. In my opinion, the entrepreneur delegate (Huang Zhiming) only intends to entrench his vested interests.

@手机用户[Zhengzhou, Henan]
The deputy is irresponsible. Once the motion is passed, the privileged groups like high-ranking officials and rich businessmen would begin to ‘grab’ the land. In that case, what would the common people do? Have you considered the disadvantaged groups? And by submitting the motion, whose interests you are representing now?

@手机用户[Nanchang, Jiangxi]
Have you (Huang Zhiming) ever considered that this way (giving property owners permanent usage right), the rich-poor gap may be further widened and entrenched? China possesses a large population and so the land resources are regarded as quite scarce. If the state could not regulate, our farmland may be eaten away for business use and Chinese people would starve.

 

 


 


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