China land ministry clarifies the mystery of how to deal with expired land use right

Finally, China Ministry of Land and Resources posted on its website yesterday a Q&A series in which the long-waited guideline on how to deal with land use rights that have expired in some cities in China.

Early this year, local government in Wenzhou, Zhejiang province was reported to be ready to collect renewal fee from people whose properties are sitting…

The Tenure Issue of Land Use Right in China: what if it expires?

Most of you don’t really care about this as it has nothing to do with you, unless you have a property in China. By a property, I mean mainly apartments, houses, residential or commercial.

A  piece of news from Wenzhou, a economic hub of Zhejiang province, an eastern China province, has sort waken up Chinese people who have been intentionally or inadvertently…

Allocated land use right issue in purchasing properties in French Concession Area in Shanghai

This is actually a summary written to one of my clients who is selling his house in the French Concession Area in Shanghai. One of his prospective buyers raised a good question regarding the land use right after reviewing the title deed of the house. Unlike other new apartments, my client’s title deed of his house does not specify a 70 year period of land use…

Litigation strategy in Chinese courts: annul or rescind the contract?

The strategy I talk about here may apply in other cases at Chinese courts. While it may sound weird to foreign minds, it is very true in China.

Our real estate team at Dacheng Law Offices (Shanghai) has dealt  with a quite controversial case recently. Here are the facts:

The client bought a factory building in an Industrial Park in Fengxian District, Shanghai.…

Case study:development and transaction of industrial lands in Shanghai China

Just recently, the dispute between Premier and Menghai Chemical that grabbed a lot of media attention has come to its final end with the announcement of the judgment by the appellate court affirming the decision of the district court in Fengxian.

The gist of the judgment that most intrigued me and people interested in the case is that the court concluded that …

the hardest nut: land reform, pending China all-important party plenary meeting in November

Two months away from the third plenary session of CCP central committee, according to HK Economic Times, as a critical part of the overall reforms much expected and longed for, reforms in regard of Chinese land regime has still been in dispute among the top echelon people in China Community Party.

It is no surprise to me at all. It is likely that the inability to …

Rural land issues amid China urbanization ambition,a brief summary of China Urbanization Summit Forum

During the two days from August 31 to September 1, the Summit Forum for China Urbanization was held in Xiamen, eastern coastal city in Fujian province, China. The summit was in part sponsored  by Dacheng Law Offices. As a lawyer at the law firm, I attended the summit forum, and also submitted a paper analyzing some legal issues related to transfer and conveyance…

land use right as contribution in kind in incorporating Chinese companies

Land use right in China is regarded as a form of real estate. In practice, land use right can be used as contribution in kind in capitalizing a company in China. China Company Law says in its Article 27 that upon incorporating a company, an investor can use cash, intellectual property, land use right etc. that can be valuated and transferred as contribution in capitalizing…

Allocated lands in China: a gold mine for the few people

Allocated lands in China refers to those lands that are assigned to their users for free or in other words without charging the land grant fee. China had relied on the allocated system in utilizing its land as part of the old planned economy till early 1990s when China promulgated its regulation on grant and transfer of land use right.

Bear in mind that all land…

Industrial land/premises for transfer in Qingpu, Shanghai

A European corporate client has entrusted me to look out for potential investors who may be interested in taking up the factory and the underlying premises that are located in Huaxin Township, Qingpu district, Shanghai, China.

The client is a marble business operator that has run their business for more than ten years. In 2005, the client entered into a long …

Using rural lands for industrial activities in Shanghai,China

A client came to me with a question regarding the use of a rural land in the suburbs of Shanghai.

The client has set up a wholly foreign-owned company in the outskirts of Shanghai back in 2001, engaged in industrial manufacturing activities. Instead of obtaining the state-owned land use right, the WFOE ventured to take up a site with existing building and facilities.…

Is the confiscation of Shenzhen Kingglory Plaza legal under Chinese laws?

I have been waiting for more details regarding the confiscation of Shenzhen Kingglory Plaza to be disclosed or leaked. But the Shenzhen government seems determined not to tell more than what the media has reported.

As a real estate lawyer that has been focusing on Chinese real estate law practice for long, I was indeed shocked to hear the news about confiscation…

Another meaningful victory against Shanghai local government in respect of inheritance of garden villa on allocated land

A few months ago, I was approached by one of the offspring of Sun Yat Sen, the founder of the Republic of China, for his trouble in inheriting a garden villa located in Xuhui district in Shanghai China. The trouble is that he and other heirs to the estate garden villa are required by local land administration to pay a big sum of land grant fee for the land underlying …

Land Regulation Framework in China

1. types of land
According to the Land Law of the People’s Republic of China, effective as from January 1, 1999 (the “1999 Land Law”), land in China is basically categorized into three kinds, namely, agricultural land, construction land and unutilized land. The agriculture land refers to those directly used for agricultural production,…