Abstract

This study focuses on analyzing the ongoing land policy reform that allows collective-owned rural land transactions in the open market in Shenzhen, China. Employing a case study method, we investigate this land policy evolution through description and contextual analysis. We argue that the existing dual-track land administration system, within which the state administers market transactions, has contributed to numerous social problems, such as urban land scarcity, inefficiency of land resource allocation, and exacerbated social injustice. Following the recent actions of the central government, a collective-owned rural land parcel in Shenzhen was officially transferred in November 2013, an action viewed as a landmark step in reforming the current dual-track land system. Though the generalization of Shenzhen’s experiment nationwide faces significant barriers, Shenzhen’s breakthrough in liberalization of the rural land market indicates that China is moving toward a potential new round of land policy revolution.

Highlights

  • On 20 December 2013, the use right of a collective-owned rural land parcel in Shenzhen was officially sold in the market [1]

  • Urban land is owned by the state, but its land use rights can be transferred in the market

  • Based on an examination of the challenges faced by the current dual-track land system, this paper focuses on analyzing the very recent policy reform of allowing rural land use rights transactions in Shenzhen

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Summary

Introduction

On 20 December 2013, the use right of a collective-owned rural land parcel in Shenzhen was officially sold in the market [1]. Under this system, urban land is owned by the state, but its land use rights can be transferred in the market. Based on an examination of the challenges faced by the current dual-track land system, this paper focuses on analyzing the very recent policy reform of allowing rural land use rights transactions in Shenzhen. This reform is still in its nascent stage, but has significant potential influence on the country’s future economic, urbanization, and land-administration policies. The fifth section considers the challenges in the marketization of rural land, followed by a conclusion

Drawbacks of the Current Dual-Track Land System
Explorations of Collective Land Marketization at the Local Level
The Shenzhen Breakthrough
Challenges in Implementation of the Policy of Rural Land Transaction
Findings
Conclusions
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