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Land reform will trigger a market of hundreds of billions of dollars and become the key to China's real estate transformation

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  • Time of issue:2021-08-28 16:47
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(Summary description)On March 30, 2020, the CPC Central Committee and The State Council issued the Opinions on Building a More Perfect Market-oriented Allocation System and Mechanism of……

Land reform will trigger a market of hundreds of billions of dollars and become the key to China's real estate transformation

(Summary description)On March 30, 2020, the CPC Central Committee and The State Council issued the Opinions on Building a More Perfect Market-oriented Allocation System and Mechanism of……

  • Categories:Focus
  • Author:
  • Origin:
  • Time of issue:2021-08-28 16:47
  • Views:
Information

On March 30, 2020, the CPC Central Committee and The State Council issued the Opinions on Building a More Perfect Market-oriented Allocation System and Mechanism of Factors of Production (hereinafter referred to as the "Opinions").As the allocation document for the market-oriented reform of land factors, it puts forward a number of specific measures related to the direction of land reform, including the delegation of the right to review and approve the indicators of urban and rural construction land to the provincial level, the establishment of a unified urban and rural construction land market, and the exploration of the establishment of a nationwide cross-regional transaction mechanism for the indicators of construction land and supplementary cultivated land.

This land reform will bring hundreds of trillions of levels of vitality to the whole China in the coming decades, and will surely promote the better development of China's urbanization and rural modernization.

How to unscramble the whole train of thought of reform of market of this land element?How should land expropriation system and supporting reform be done?The reporter interviewed Huang Qifan, vice chairman of the China Center for International Economic Exchanges

Reporter: Director huang, please talk about why should devolve land to examine and approve authority?

Huang Qifan: The State Council issued the decision of authorizing and delegating the approval power of land use. It authorized provincial governments to approve the conversion of agricultural land other than permanent basic farmland into construction land. At the same time, it piloted the conversion of permanent basic farmland into construction land.

Decentralization of construction land examination and approval power is an inevitable requirement for the modernization of national governance system and capacity.In the past, due to the problems of high level of construction land approval, long approval cycle, many review links and low approval efficiency, it is not conducive to the timely landing of major projects.At this time, deepen the land approval system, streamline administration and delegate power, improve administrative efficiency.

Delegating the power of construction land examination and approval is an inherent part of the implementation of the CPC Central Committee and The State Council's reform requirements on decentralization, regulation and services, and the optimization of business and environmental decisions.Delegating the right of land approval is an important measure to promote the landing of investment projects, which provides policy support for promoting the effective landing of investment, promoting the security of universities and realizing the goals of economic and social development.

Reporter: Director Huang, how do you understand the impact of decentralization of land approval power on the allocation of land resources, industrial distribution and urban agglomeration development?

Huang Qifan: First, we will further optimize the allocation of land resources, but it will not lead to the increase of large-scale construction land. We will focus on the adjustment of the distribution and improve efficiency.

Second, although the power of examination and approval has been delegated to local governments, the country's strictest farmland protection system and the requirement to keep the red line for farmland protection have not been relaxed. This principle has only been delegated to provincial governments.In the future, all levels of territorial space planning, land supply plans and construction land supply will focus on tapping existing land and controlling growth.

Third, decentralization of land approval will further promote the reconstruction of urban differentiation pattern, urban pattern will usher in a new great change.

Reporter: The Opinions put forward that a unified construction land market between urban and rural areas should be established and improved.This has always been the direction of China's land market reform, but it has been difficult to promote this reform for many years.Where are the difficulties?What other complementary measures are needed?

Huang Qifan: For a long time, China's urban and rural land management system has been implemented, resulting in the dual structure of urban and rural land simultaneously, and urban land belongs to the state.

In the early days of the founding of New China, urban land was rented for compensation, and rent must be paid to the state to use land.After 1954, according to the planned economy arrangement and with the approval of the government, the government no longer paid rent to the occupied land, and the land management entered the stage of free allocation.

After the reform and opening up, China began to carry out the reform of compensated use of land system, and finally formed the existing compensated use of urban state-owned land system, which was introduced nationwide after 1990.Urban land is state-owned, rural land is collective.Legal market circulation channels for construction were basically closed, and the space for rural development was compressed.First, the restriction of macroscopic legal system.Second, the enthusiasm of local governments is not high.Third, the degree of marketization is low. Land is not completely allocated by market resources, but is operated and promoted by a working group of local government.Fourth, relevant supporting systems have not kept up.

Reporter: "opinion" points out, want to explore countrywide construction land complement cultivated land index cross region trade mechanism, how do you look at a bit?

Huang Qifan: This is the most profound point of the reform and a strategic measure to optimize the allocation of land resources across the country.In the process of rapid economic development, there is a general contradiction between the gap of cultivated land, the protection of cultivated land and the guarantee of economic and social development.On the contrary, the areas with rich land resources, such as inland areas and central and western regions, have a lot of arable land reserve resources that can be supplemented, but the land value is difficult to realize because of the underdeveloped economy.

In view of this, Starting from 2017, China has gradually lifted the requirement for the balance between the occupation and supplement of cultivated land, carried out the linkage between the increase and decrease of urban and rural construction land, carried out the pilot project of inter-provincial adjustment, and explored the establishment of a mechanism for the national arable land supplement quota and inter-regional trade of construction land.

The Opinions once again explored the establishment of a nationwide inter-regional trading mechanism for supplementary cultivated land indicators for construction land, which is conducive to the overall planning of cultivated land protection and the promotion of coordinated regional development.It is beneficial to solve the contradiction between the protection of cultivated land and the guarantee of land use.It will help leverage the financial complementarities of economically developed and resource-rich regions to boost poverty alleviation and rural revitalization.

For more than 20 years, our farmers have occupied land at both ends.There are hundreds of millions of peasants in cities, and as long as there are 10 million people in cities, they need public facilities for 10 million people.Urban land is expended, farmer land in the countryside did not withdraw again, bring about two to cover an area so.

After 40 years of reform and opening-up, China's urbanization process is still developing, and 200 million mu of farmland must be preserved, because this is the rice bowl of the Chinese people.This time the central government put forward the reform of the new land law and the reform of the land factor market.

Reporter: What breakthrough does this land system reform have?

Huang Qifan: The new Land Management Law in 2020 made a number of major breakthroughs in reforming the land acquisition system. First, it clearly defined the scope of public interest in land acquisition.Second, the basic principle of compensation for land expropriation is to ensure that the living standard of peasants is not reduced and their long-term livelihood is guaranteed.Third, we will reform the procedures for land expropriation. Instead of announcing the announcement after the approval of land expropriation, we will make the announcement before the approval of land expropriation.

With regard to the implementation of the new Land Management Law in 2020, I believe that we should draw on historical experience and good practices emerging from pilot reforms to define the role of the government.Second, ensure that land acquisition rights are used only for projects of public interest;We will establish a mechanism that takes into account the distribution of land value-added benefits among the state, collectives and individuals.

Therefore, I believe that the great significance of the land reform this time is no less than the reform of the rural contract system in the 1980s.That reform helped hundreds of millions of farmers become rich and unleashed the productive forces of rural labor.The reform this time is no less than that in the early 1990s, when the reform of land lease market promoted the whole process of Urbanization in China.

By 2018, the total income from land leasing in cities across 31 provinces in China had exceeded 30 trillion yuan, which greatly boosted the development of infrastructure and public facilities in hundreds of Chinese cities.At the same time, real estate developers and various construction units spent more than 30 trillion yuan to buy these lands, and further invested millions of yuan in real estate development, which is also an inevitable demand in the change of urban appearance and the progress of urbanization.

The launch of the new Land Law is about the market-oriented reform of factors, including the capital market, land market, technology market, digital market, and labor market reform, involving the land market and the labor market of migrant workers.

In my view, this reform will generate hundreds of trillions of vitality for the whole Country in the coming decades, and will surely push forward China's urbanization and rural modernization.Become the key to China's real estate transformation!

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