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 …

What if there are multiple heirs to inherit one piece of real estate?

Very often in an inheritance case, there are multiple heirs entitled to inherit one piece of real property. In case that the heirs are not on good terms between them, there will be problem and anxiety arising from the possible joint ownership of the same property.

So what does the law say in regard of dealing with the situation in an inheritance case? Is it possible…

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…

Pre-contract agreement in property deals in China

Deals of selling or buying properties in China involve similar procedures under China property laws. A typical deal often starts from the execution of three-party deposit agreement under which realtor, buyer and seller agree on certain terms of the deal. Under this three-party agreement, the buyer often pays a certain money as deposit (for understanding…

China real estate market:how firm the hell it is?

I cannot help asking this question.

I have been bearish about China property market for long after the fanatic price hike in 2009, but it seems that I am always on the wrong side. But recent development and the common atmosphere felt turn me a bear again. Just now, a piece of news that Younger group (domestic giant garment/suit manufacturer) published an announcement …

pre-registration in property sale/purchase in China — a tip for property buyers

The word “pre-registration” may be very confusing if not misleading for people who don’t know Chinese property law, as the word itself does not laterally match the real meaning it was meant to mean here.

The pre-registration system in Chinese property market had been in place for long before it was formally introduced and expanded in …

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 …

typical steps for making manufacturing investment project in China

By the title, I am referring to the procedures for foreign investors (companies) launching manufacturing projects in China, either by sino-foreign joint ventures or WFOEs (wholly foreign owned enterprise). I talk about greenfield investment projects in which land shall have to be purchased and developed according to the specific needs of such projects.…

acquire industrial lands in China, take Shanghai as example

Foreign investors that wish to shift their manufacturing base to China will be very keen to know how the industrial land can be obtained in China. A side product of buying instead of leasing industrial land is that over time the land will for sure appreciate in value. In our law firm, lawyers representing different clients often post information regarding purchasing…

FAQs on buying property in Shanghai, China

[NOTE, this is an old article written by Jason Tian back in 2009 based on his experience in helping foreigners in Shanghai purchase their homes here. Unfortunately, this article has been plagiarized by some other Chinese lawyers in Shanghai.Here this article is updated pursuant to new development after 2009. Please also take note that I am not encouraging

Shanghai unveils its new curbing measures for the property market

With the view to standing in line with central government with respect to stabilizing property market, Shanghai government unveiled its rules in implementing the order issued by China cabinet on Feb 26 this year.

The main points of the Shanghai Rules are as follows:

(1) Shanghai focuses much on the banking credit policies. It asks its subordinate departments…

China to enforce the 20% individual income tax rate on property sale

Apparently China central government is seeing a clear uprise of property prices throughout the country.

Just today, China state council issued a new notice ordering its subordinate governments to implement seriously the existing policies that are aimed to rein in the property market, and meanwhile, stepping up a new measure of cooling policy, namely, enforcing…

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…

China real estate scandals:the lesson you should learn when investing in real estate projects

No one will dispute the fact that real estate industry is one of the most dirty and corrupt industries in China. Any worse one? A slew of scandals in real estate sector exposed recently in media has cemented the above statement.

1.  An official from local Minhang District government of Shanghai Municipality was discovered to be engaged in illegal business…

China real estate investment:buy cultural and historical houses

I ran across a piece of news on www.Ifeng.com telling a story of a couple from Singapore purchasing a historical house in Shaoxing City, Zhejiang Province, China, that is adjacent to the “Baicao Garden” depicted in the literature by the famous historic writer, Lu Xun.

The house was built a century ago by a noble family whose line of descendants runs…

Should the couple both sign the contract for sale and purchase of the property?

In China, properties, personal or real, acquired during marriage are statutorily prescribed to be community property of the couple even though only the name of one spouse is registered as owner on the relevant title deeds or ownership certificates. Being community property in the case of real property such as apartment, houses, condo, office and other commercial…