Published by ChinaMNC · Dangxiong

Xuzhou Updates Land Acquisition Compensation Standards: What Foreign Founders Need to Know

Xuzhou Municipal Government has issued new comprehensive land acquisition compensation standards for collective land, effective immediately and valid until December 31, 2028. The standards specify compensation rates per mu for different districts and categories of land, and include detailed schedules for crops, trees, and attachments. Foreign founders operating in Xuzhou or planning to acquire land use rights should understand these rules, as they may affect project costs and compliance.

Xuzhou Adjusts Land Acquisition Compensation Standards

The Xuzhou Municipal Government has released a notice updating the city’s comprehensive land acquisition compensation standards for collective land. The new standards, approved by the Jiangsu Provincial Government, implement the national Land Administration Law and its implementing regulations, as well as provincial rules. The notice took effect on publication and remains valid until December 31, 2028. For foreign founders registering or operating a company in China, especially those involved in land-related projects, these standards provide the framework for compensation when collective land is acquired by the government.

Key Compensation Rates by District

The comprehensive compensation for acquiring collective agricultural land consists of land compensation and resettlement subsidies. It excludes social security costs for affected farmers, as well as compensation for attachments and young crops. The city is divided into three main compensation zones:

• Zone 1: Gulou District, Yunlong District, Quanshan District, and Xuzhou Economic and Technological Development Zone each form a single zone. The comprehensive rate is 54,000 yuan per mu, of which land compensation is 28,000 yuan per mu and resettlement subsidy is 26,000 yuan per person.
• Zone 2: Tongshan District forms a single zone with a comprehensive rate of 53,000 yuan per mu, including land compensation of 27,000 yuan per mu and resettlement subsidy of 26,000 yuan per person.
• Zone 3: Feng County, Pei County, Suining County, Pizhou City, Xinyi City, and Jiawang District each form a single zone. The comprehensive rate is 48,500 yuan per mu, with land compensation of 26,000 yuan per mu and resettlement subsidy of 22,500 yuan per person.

The above land compensation rates apply to dry land. For paddy fields and vegetable plots, the compensation increases by 3,000 yuan and 14,000 yuan per mu, respectively.

Other Land Types and Special Cases

Acquisition of collective construction land is compensated at the same rate as the comprehensive standard for collective agricultural land in the same zone. For collective unused land, the compensation is 0.7 times that standard. For collective operating construction land legally obtained, compensation is determined through parcel-specific appraisal, following the principle of equal rights for equal land.

For large and medium-sized water conservancy and hydropower projects, the city’s compensation standards apply in principle. However, if the State Council or Jiangsu Provincial Government sets higher standards, those higher standards prevail.

Social security costs for farmers whose land is acquired are managed according to Jiangsu Provincial Government Notice Su Zheng Fa [2021] No. 87 and Xuzhou Municipal Government Implementation Opinion Xu Zheng Gui [2022] No. 4.

Compensation for Crops, Trees, and Attachments

The notice includes an attachment detailing compensation standards for young crops and above-ground attachments. Key points include:

• For general timber trees (e.g., poplar, willow, plane tree, locust): new plantations under three years with 200–300 trees per mu: 4,000–6,000 yuan per mu; mature trees with 100–120 trees per mu: 12,000–15,000 yuan per mu.
• For economic trees (e.g., apple, hawthorn, jujube, pear, walnut, pomegranate, chestnut, persimmon, ginkgo): compensation ranges from 8,000 yuan per mu for young trees (trunk diameter <4cm, planted over 2 years) to 40,000 yuan per mu for mature trees (diameter ≥8cm with canopy coverage >55%).
• For peach, plum, apricot, and grape: similar rates as above.
• For pepper trees: 6,000–12,000 yuan per mu depending on diameter.
• For tea bushes and similar: 12,000 yuan per mu.
• For mulberry fields: 3,000–7,000 yuan per mu based on diameter.
• For production nursery stock: 20 yuan per square meter if movable, 30 yuan per square meter if not; potted plants are not compensated.

Structures such as deep-water wells, hand pumps, greenhouses, and toilets have specified compensation rates. For example, a deep-water well with a diameter of 0.44m and depth of 150m (including pump house and equipment) is compensated at 75,000 yuan; a greenhouse with glass is 200 yuan per square meter, and with plastic film 120 yuan per square meter.

Note that trees and crops planted in cultivated fields are not compensated. Excess trees beyond reasonable densities are also not compensated. Ancient and famous trees are handled according to landscaping department regulations. For items not listed or where the standard is disputed, an appraisal determines the compensation.

Implementation and Transitional Rules

Local governments must strictly follow the Land Administration Law regarding acquisition scope, procedures, and compensation standards. They must ensure timely and full payment of land compensation, resettlement subsidies, and compensation for rural residences, attachments, and young crops, and arrange social security costs. During implementation, attention should be paid to the transition between old and new standards and to preventing legal risks. After approval of land acquisition, any surplus in compensation funds is transferred to the county-level land acquisition compensation adjustment fund; any shortfall is covered by local government from that fund.

For land acquisitions approved by the State Council or provincial government between January 1, 2026, and the effective date of this notice, the difference must be paid promptly according to the new standards.

What This Means for Foreign Founders

Foreign founders operating in Xuzhou or considering land-related investments should be aware of these compensation standards. They affect project costs if land acquisition is involved, and compliance with compensation rules is essential. Understanding the zoning and rates can help in negotiating leases or acquisitions of land use rights. Additionally, the detailed schedules for crops and attachments provide clarity on potential compensation liabilities. As always, consulting local legal and tax advisors is recommended for specific transactions.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

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