| According to the current Chinese law, in order to carry out commercial development and construction on a collectively-owned land, the land must first be requisitioned by the state, and then the right to the use of the land must be transferred to the user of the land by the competent government authorities of land and resources. The owners of a collectively-owned land can not directly conclude a contract with the user of the land to establish the right to the use of collectively-owned land for construction. In the reform, at least scope of application of the land requisition system should be adjusted. The land requisition system should no longer be applicable to collectively-owned land for commercial use. Collective economic organizations should be able to create the right to the use of collectively-owned land for construction by concluding contract on the transfer of such right directly with the user of the land. This will lead to changes in the way and method the other property rights on the collectively-owned land—including the ownership of houses, plants, office buildings, etc.—become extinct. The user of a collectively-owned land should pay full consideration to the owner of the land, as well as full compensation for the termination of the right to contracted management of land, for the loss of the right to the use of house sites obtained through payment, and for the loss of original right to the use of collectively-owned land for construction. |
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