(Promulgated by Decree No. 56 of the State Council of the People's Republic of China on May 19, 1990, and effective from the date of promulgation)
For the purposes of employing foreign investment in the development and management of tracts of land (hereinafter referred to as "tract development"), intensifying the constructions for public use, improving the investment environment, inviting foreign-invested technically advanced enterprises and export-oriented enterprises, and developing an export-oriented economy, these Measures are formulated.
For the purpose of these Measures, the expression "tract development" means the comprehensive development and construction on the land as planned after acquiring the State-owned land-use right, including leveling the ground and constructing such public works as water supply and drainage systems, power and heat supply systems, roads and communications networks, and communications facilities, in order to create the conditions for industrial or other construction purposes. After that, the investor shall transfer the land-use right it acquired and operate public utilities, or proceed to construct such above-ground buildings as industrial houses and the supporting facilities for production and everyday life services and engage in the business activities of transferring or leasing these above-ground buildings.
As regards the tract development, the development target shall be defined explicitly and the construction projects that are intended to make use of the developed land shall be had.
The municipal or county people's government shall organize to work out the written proposals (or the preliminary feasibility study report, the same hereinafter) if a tract development project is to employ foreign investment.
If a tract development project is to make use of 1,000 mu or less of arable land or 2,000 mu or less of other land and the amount of investment for comprehensive development falls within the approval jurisdiction of the people's government of the province, autonomous region or municipality directly under the Central Government (including the people's government or administrative committee of a special economic zone, the same hereinafter), the proposals shall be approved by the people's government of the province, autonomous region or municipality directly under the Central Government.
If a tract development project is to make use of more than 1,000 mu of arable land or more than 2,000 mu of other land and the amount of investment for comprehensive development does not fall within the approval jurisdiction of the people's government of the province, autonomous region or municipality directly under the Central Government, the proposals shall be approved by the State Council after being submitted by the people's government of the province, autonomous region or municipality directly under the Central Government to the State Planning Commission for examination, verification and overall balancing.
In order to initiate tract development with foreign investment, the Chinese-foreign equity joint venture, Chinese-foreign contractual joint venture or foreign-capital enterprise, which engages in the development and management (hereinafter referred to as the "development enterprise") must be established as required respectively by the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures and the Law of the People's Republic of China on Foreign-Capital Enterprises.
Development enterprises shall be governed and protected by China's law and their activities shall comply with the laws and regulations of the People's Republic of China.
Development enterprises shall operate and manage autonomously according to law, but they have no administrative power over their development areas. The relationship between a development enterprise and other enterprises shall be of a commercial nature.
The State encourages the State-owned enterprises to form development enterprises with foreign investors by using the State-owned land-use right as investment or condition of co-operation.
A development enterprise is required to acquire the State-owned land-use right for its development area according to law.
The municipal or county people's government in the place where the development area is located shall, if assigning the State-owned land-use right to a development enterprise, rationally decide the piece of land, its purpose, the term of validity, the assignment fee and other requirements, conclude an assignment contract of the State-owned land-use right as required by the State's laws and administrative regulations on the land administration, and submit it for approval according to appropriate approval jurisdictions for the assignment of the State-owned land-use right.
Although the State-owned land-use right is assigned, the resources and things buried thereunder shall continue to be owned by the State. If it is necessary to exploit and utilize them, the matter shall be governed by the appropriate laws and administrative regulations of the State.
A development enterprise shall prepare a tract development plan or a feasibility study report, explicitly including the overall targets and respective targets for different processes, the specific details and requirements in the actual development, and the plan to utilize the developed land.
The tract development plan or feasibility study report shall, after being examined and verified by the municipal or county people's government, be submitted to the people's government of the province, autonomous region or municipality directly under the Central Government for approval. The examining and approving authorities shall organize the competent departments concerned to provide co-ordination concerning the construction and management of the public works involved.
If the development area is within the limits of a planned urban area, the development and construction must conform to the requirements of city planning and follow the administration of the planning.
The construction in the development areas must conform to the State's laws, administrative regulations and standards on environmental protection.
A development enterprise may transfer the State-owned land-use right only after it has carried out the tract development plan and satisfied all the requirements of the assignment contract of the State-owned land-use right.
If it fails to invest in the development of the land as required by the assignment contract and the tract development plan, no transfer of the State-owned land-use right may be allowed.
The transfer or mortgage of the State-owned land-use right by development enterprises and other enterprises and the termination of the right shall be governed by the State's laws and administrative regulations on the land administration.
A development enterprise may invite investors to the development area for making investment, accepting the transferred right to the use of state-owned land and launching enterprises. Enterprises with foreign investment shall be established respectively in accordance with the provisions of the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures and the Law of the People's Republic of China on Foreign-Capital Enterprises.
The establishment of enterprises in the development areas shall conform to the State's industrial policy for the investment.
The State encourages the establishment of technically advanced enterprises and export-oriented enterprises.
The postal and communication business within the development areas shall be unifiedly planned, constructed and managed by the postal department or, with the approval of the competent postal department of the province, autonomous region or municipality directly under the Central Government, be constructed with investment by a development enterprise or with joint investment by the development enterprise and the postal department for the construction of communications facilities, which, in either case, shall be transferred, after completion, to the postal department for management, with financial compensation to be given to the development enterprise in accordance with the contract signed by two parties.
If a development enterprise invests in such public works of production nature as power station, heat station or water plant within the development area, it may manage the business of power, water or heat supply within the development area or hand it over to the local enterprise of public utilities for management. If the capacity of the public utilities is in surplus, which renders it necessary to be supplied to places outside the development area or to be connected to a network outside the development area for management, the development enterprise shall sign a contract with the local enterprises of public utilities in pursuance to the State's relevant regulations and operate as required by the contract.
If it is necessary for a development area to use water and power resources from outside, the business thereof shall be managed by the local enterprises of public utilities.
If a development area covers a coastal port or bay, or a river port sector, the coastline or riverside line shall be planned and administered by the State in a unified way. The development enterprise may construct and manage the port area and wharf for special purpose in accordance with the unified planning of the State's competent communication authority.
No business activities or social activities that are prohibited by the State's laws and administrative regulations may be engaged within the limits of the development areas.
Special administrative measures required by import and export administration and Customs administration within a development area which is mainly intended for the export processing enterprises shall be submitted to, and approved by, the State Council, and the concrete measures of administration therefor shall be set forth by the appropriate competent authorities of the State.
The general administration, judicial administration, port administration and Customs administration within the limits of a development area shall be organized respectively by the competent authorities of the State, the local people's government at its site, and the judicial authorities that have jurisdiction.
Tract development with investment by companies, enterprises and other economic organizations or individuals from Hong Kong, Macao and Taiwan shall be governed with reference to these Measures.
These Measures shall enter into force on the date of promulgation within the limits of the special economic zones, the open coastal cities and the open coastal economic zones.