Published by ChinaMNC ยท Sangzhuzi
Xuzhou Updates Land Compensation Standards: What Foreign Founders Need to Know
Xuzhou's new land compensation standards affect land acquisition costs for foreign-invested projects. Here's what international founders should understand about the updated rates and their implications for company registration and operations in China.
Key Takeaways for Foreign Founders
Xuzhou Municipal Government has issued new comprehensive land compensation standards for requisitioned land, effective from the date of publication until December 31, 2028. For foreign founders considering setting up operations in Xuzhou or those whose projects involve land acquisition, these standards directly impact project costs and site planning. The update aligns with national and provincial regulations and aims to protect the rights of rural collective economic organizations and farmers.
What Land Compensation Standards Mean for Your China Company Registration
If your business plans to acquire land use rights in Xuzhou, understanding these compensation standards is essential for budgeting and compliance. The new standards clarify how compensation is calculated for different land types and regions within Xuzhou, which can affect the overall cost of your project and the timeline for land transfer.
Breakdown of Compensation Standards by District
The comprehensive land compensation for requisitioned collective agricultural land consists of land compensation fees and resettlement subsidies. It does not include social security costs for farmers, or compensation for attachments and young crops, which are calculated separately.
District-Specific Rates
- Gulou District, Yunlong District, Quanshan District, and Xuzhou Economic and Technological Development Zone: Each is designated as a single compensation zone. The comprehensive standard is 54,000 yuan per mu, including a land compensation fee of 28,000 yuan per mu and a resettlement subsidy of 26,000 yuan per person.
- Tongshan District: Designated as a single zone with a comprehensive standard of 53,000 yuan per mu, including land compensation of 27,000 yuan per mu and resettlement subsidy of 26,000 yuan per person.
- Feng County, Pei County, Suining County, Pizhou City, Xinyi City, and Jiawang District: Each designated as a single zone with a comprehensive standard of 48,500 yuan per mu, including land compensation of 26,000 yuan per mu and resettlement subsidy of 22,500 yuan per person.
For land compensation fees, the above rates apply to dry land. If the requisitioned land is paddy field or vegetable land, the land compensation fee increases by 3,000 yuan per mu and 14,000 yuan per mu, respectively.
Other Land Types and Special Cases
Requisition of collective construction land follows the same comprehensive standard as collective agricultural land in the same zone. For collective unused land, the standard is 0.7 times the comprehensive standard for collective agricultural land. For collective operational construction land obtained legally, compensation should be determined through parcel-specific land price appraisal, following the principle of equal rights for equal land.
For large and medium-sized water conservancy and hydropower projects, compensation is generally based on Xuzhou's standards, but if State Council or Jiangsu Provincial Government standards are higher, those higher standards apply.
Social Security and Young Crops Compensation
Social security fees for requisitioned farmers are raised, managed, and used according to Jiangsu Provincial Government Document No. 87 (2021) and Xuzhou Municipal Government Implementation Opinion No. 4 (2022).
Compensation for young crops and attachments is detailed in the attachment to the notice. Young crops that can be harvested as scheduled are not compensated. For other agricultural land, young crop compensation is calculated by reference to adjacent cultivated land; for construction land and unused land, no young crop compensation is provided.
Implementation and Transition
The notice is effective from the date of publication and valid until December 31, 2028. For land acquisitions approved by the State Council or Jiangsu Provincial Government between January 1, 2026, and the effective date of this notice, any difference must be paid according to the new standards.
Local governments are required to strictly follow the Land Administration Law regarding scope, procedures, and compensation standards, ensure timely and full payment of compensation and resettlement subsidies, and arrange social security fees. They must also manage the transition between old and new standards and mitigate legal risks. Any surplus in compensation funds after approval is to be placed in a county-level adjustment fund, with shortages covered by local governments through the same fund.
Practical Implications for Foreign Founders
When planning a project in Xuzhou, foreign investors should factor in these compensation standards into their feasibility studies and budget. The district-specific rates mean that location choice within Xuzhou can significantly affect land acquisition costs. Additionally, understanding the distinction between land types and the additional costs for paddy or vegetable land is crucial for accurate financial planning.
For company registration, these standards do not directly affect the registration process but are relevant for businesses that require land use rights, such as manufacturing or large-scale agricultural projects. Foreign founders should consult local authorities or professional advisors to navigate land acquisition procedures and ensure compliance with all regulations.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.