Circular of the State Council on Strengthening the Asset Management of State-Owned Lands

Circular of the State Council on Strengthening the Asset Management of State-Owned Lands

Guo Fa [2001] No.15

May 30, 2001

Since the adoption of reform and opening-up policies, with the deepening of the reform of land using system, the asset value of land resources has been realized, and land resources have been gradually adapted to the needs of urban construction, enterprise reform and economic restructuring. However, the proportion of the state-owned land asset allocated through market mechanism is not high, and the transparency of land exchange remains low; allocated lands massively flow into the market illegally, and the transaction is conducted invisibly. The phenomenons phenomena such as cutting land price at will, squeezing and seizing the revenues of state-owned land are very serious. As a result, considerable land revenues which should be obtained by the state flow into pockets of a few entities or individuals. All these not only affect the protection, rational development and utilization of land, but also give rise to corruption. In order to strengthen the asset management of state-owned lands, effectively prevent the loss of state-owned land assets, we hereby notify the related issues as follows:

Article 1 Strictly control over the total supply of the land for construction purposes
Strictly controlling over the total supply of land is a basic prerequisite to regulate the land market. Only under such basic prerequisite can land resources allocation through market mechanism play a fundamental role; land asset value be fully realized, and the utilization ratio of land resources get increased. The governments at all levels shall rigidly enforce the overall plan for land utilization, urban planning and annual plan for land utilization, tightly control the total supply of newly-added construction land. It is necessary to seize the opportune time of economic restructuring, guide land utilization toward the adjustment and transformation of the existing construction land, and optimize the structure of land utilization.
Cities at all levels should enhance efforts to dispose the idle land; solve the problems left over by history in a positive and steady way; reduce the loss of state-owned assets to the maximum extent; determinedly take back the idle land which shall be redeemed without paying any compensation as required by law.
Adhere to centralized and unified land administration; ensure the municipal government to supply construction land in centralization and unification way. Cities at all levels are not allowed to establish, without permission, any industrial park, technology park or development zone against relevant provisions of the state. The lands used for the established area under the jurisdiction of the municipal government, industrial park, technology park or development zone with approval shall be managed and supplied uniformly.
　　......