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Land Policies for Foerign Investment in Beijing



Land Policies for Foerign Investment in Beijing

1.Management of Collective Land Acquisition

According to the approval documents of investment planning, commercial, and urban planning and administration authorities, foreign investors who need to use collective land shall go to land administration authorities to go through land acquisition procedures. If agricultural land is involved, it is also necessary to complete agricultural land conversion procedures.

(2)Management of Compensated Use of State-owned Land

According to law, the state exercises the system of compensated and limited use of state-owned land; foreign investors who invest in Beijing shall comply with the law when using land. Land for profit-making projects is all granted through public bidding, auction and listing at Beijing’s land transaction market. 

The assignment of land use right refers to the act that the state as the owner of the land assigns, within a certain period, land use right to land users, who shall in turn pay fees for the assignment thereof to the state. An assignment contract shall be signed for assigning the land use right between land administration authorities and land users. Land users have the right to transfer, lease or mortgage the land as allowed by law and contract provisions. 

According to different usesof land, the maximum term of land use right transfer ranges from 40 to 70 year. Bid for state-owned land use right refers to the act that land administration authorities in municipal
or county governments issue a bid notice to invite specific or unspecific citizens, legal persons and other organizations to participate in the tender for state-owned land use rights, and determine the land user according to results of the bid. Auction for state-owned land use right refers to the act that bargainors issue auction notices and let bidders to make competitive bidding at the designated time and the designated location, and determine land users according to the results of the auction Listing for state-owned land use right refers to the behavior of bargainors who publish listing notices and land transfer conditions at the designated land transaction market within a specified term; according to the bid prices of bidders, the listing price will be updated in time.

The buyer will be determined according to the price before the deadline.

1) Since the date of listing, the bargainor will publish the location, area, use, usage period, planning requirements, opening price, increment principles, increment range, etc. at the land
transaction place;

2)Qualified bidders will give their prices;

3)After price confirmation by the bargainor, the listing price will be updated;

4)The bargainor will continue to accept new prices;

5)The bargainor shall determine land winner before the deadline Listing shall last at least 10 working days.

During the period, the increment range can be adjusted according to actual situation. After the listing period expires, it will be determined whether the transaction is effective in accordance with the following provisions:

1) Within the listing period, if there is only one bidder whose bid price is higher than the opening
price, and other conditions are met, so the listing will be concluded.

2) Within the listing period, if there are two or more bidders, the one with the highest bid price
will be the winner; if their prices are the same, the one who first submit the price is the winner, unless the bid price is lower than the base price.

3) Within the listing period, if there is no bidder,if the prices of bidders are lower than the base
price, if other conditions cannot be met, the listing will be failed. At the time of listing deadline, if there will still be two or more bidders, the bargainor shall conduct on-site bidding, the bidder who offers the highest price will be the winner.

Apart from the above-mentioned methods of obtaining land use right, foreign investors can also acquire land use right by paying foreign-invested enterprises land use fees annually according to law.
Usually land use right of this type is for personal use only and cannot be transferred, leased, or pledged. In general, the land tenure equals to the operation period of foreign-invested enterprises.
Land use fee refers to the money paid by foreign-invested enterprises to the local government for the use of land during their operating period, not including land requisition, demolition, infrastructure construction and other costs;
The above-mentioned land use methods, in general, are applicable only to production-oriented industries that are using the original joint-venture land, planting land, husbandry and aquaculture land of the Chinese parties and land for other uses approved by the government.

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