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Notice of the General Office - Ministry of Commerce on the Strict Implementation of the Relevant Land Policies in Attracting Investments

Promulgation date:

April 3, 2007

Effective date:

April 3, 2007


Ministry of Commerce

No. 32 [2007] of the Ministry of Commerce

To the competent authorities of commerce of all provinces, autonomous regions, municipalities directly under the Central Government and Xinjiang Production and Construction Corps, all state-level economic and technological development zones, Xiamen Haicang Taiwanese Investment Zone, Shanghai Jinqiao Export Processing Zone, Hainan Yangpu Economic Development Zone, Ningbo Daxie Development Zone, and Suzhou Industrial Park:

At present, substantial achievements have been made all over this country in the promotion of investments, however, it presents a number of issues in this work. In some localities, there still exist situation of violations of the state policies on land administration and control in attracting investments. For example, in some localities, the right to use land for industrial purposes has been transferred to a foreign investor at a price lower than the cost or even at “zero price”, without regard to the cost; the statutory land taxes and fees have been reduced or exempted to attract foreign investments; after the completion of construction of a foreign-invested enterprise, the local government has refunded the payment for land requisition from its fiscal funds; or has used the land beyond the planned purposes. All such practices have intensified the vicious competition in attracting investments, diluted the consciousness of land conservation, and resulted in the loss of state-owned assets. To strengthen the consciousness of land protection and strictly implement the state policies on land administration and control, the following relevant matters are hereby notified to you:

1.  All localities shall seriously study the <Decision of the State Council on the Furtherance of Reform and Tightening Land Administration (No.28 [2004] of the State Council)>, <the Notice of the State Council on Issues concerning Strengthening the Land Control (No.31 [2006] of the State Council)> and other relevant documents, so as to firmly implement the various policies and measures in relation to strengthening land administration and control;

2.  All localities shall conduct an overhaul of their practices in implementing the land policies in attracting investments by virtue of the provisions of the foregoing documents on the land administration and control, and shall immediately mend those practices, if any, in violation of the relevant provisions of the state and properly deal with the relevant matters so as to reduce the external negative effects.

3.  All localities shall, henceforth in the promotion of investments, transform their conceptions, pay attention to the integrated investment environment, and improve the quality of government services. The Ministry of Commerce shall cooperate with the international organizations in an effort to assist all localities in making the local strategies on the promotion of investments and improving the quality and results of the promotion of investments by adopting scientific and efficient working methods and means.

Issued by the General Office of the Ministry of Commerce
April 3, 2007

This translation, together with any explanatory material, is provided courtesy of Lehman Tax & Accounting.

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