The PRC Law on Land Contract in Rural Areas (农村土地承包法, “the Law”) is the perfect starting point to learn about the legal framework on rural land in China.
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In China, rural land is collectively owned by rural communities. However, the members of the rural community may obtain the land use right for a certain piece of land in the rural community for a certain period, and organize agriculture production on the land. Such land use right is the so-called “right to land contractual management” (土地承包经营权).
Such rural land use system appeared as early as 1978 (the end of the Cultural Revolution in China), but it was not until 2002 that China enacted the Law, which had a comprehensive description of such system. Since then, the Law has been amended respectively in 2009 and 2019.
The most noteworthy parts are introduced below:
1. Who owns rural land?
The rural land ownership belongs to the rural community where the land is located. The aforesaid rural community refers to the collective economic organization in rural areas.
2. Who can obtain the right to land contractual management?
The members of the rural community (i.e. “members of the collective economic organization in rural areas” as mentioned in the Law) can be granted the right to land contractual management in the form of contracting by households. (Article 5)
The right to land contractual management on the arable land, forestland, grassland, etc. can only be granted to rural community members. Other people outside of the rural community can obtain the right to land contractual management on the barren mountains, ditches, hills, beaches, etc. (Article 3)
3. What can you do on the land upon obtaining the right to land contractual management?
You can organize agriculture production on the land and dispose agricultural products at your discretion. However, you shall not use the land for any purpose other than agriculture or cause permanent damage to the land. (Article 18)
You can exchange the right to land contractual management with other rural community members, or assign your right to land contractual management to others. If the land is requisitioned by the government, you can also obtain compensation. (Article 17)
4. How long is the effective term for the right to land contractual management?
The effective term for arable land is thirty (30) years, for grassland thirty (30) to fifty (50) years, and for forestland thirty (30) to seventy (70) years. The right to land contractual management may be extended for another same period upon the expiry of the effective term. (Article 21)
Photo by Vidar Nordli-Mathisen(https://unsplash.com/@vidarnm) on Unsplash
Contributors: China Laws Portal Team
