Recent Reform of China’s Rural Land Compensation Standards

Abstract

Since China adopted an open door policy in 1978, there has been rapid development in the economy and great improvement to the livelihood of the people. The rapid development also expedites urbanisation in the country. These forces have created great demand for land to support various developments. Compulsory acquisition of rural land has become a convenient means to increase land supply.Compulsory acquisition of rural land is governed by the People’s Republic of China Law of Land Administration 1998. This law also provides for the payment of compensation to dispossessed farmers. Land acquisition in recent years has encountered increasing resistance from farmers because of improper acquisition procedures and unfair compensation. In some cases, the resistance turns into violence and loss of human life.In response to the serious problems, the Chinese government has since 2004 taken major steps, including amendment of the Constitution, to reform the land acquisition procedures and compensation standards. This paper aims to examine the latest development in the reform of compensation standards for acquisition of rural land in China. Recommendations for improvement are provided.