Latest Regulations Relating to the Provisions on Grant of State-owned Construction Leaseholds

By Guillaume Rougier-Brierre and Zhou Bi Qing of Gide Loyrette Nouel

In August 2006, Decision No. 31 was adopted by the State Council. Aimed at strengthening the control of land for specified usage the legislation imposed mandatory bidding, auction or listing procedures on land use rights for industrial use. Prior to this, such mandatory procedures merely applied to the granting of land use rights for commercial, entertainment, tourism and residential purposes only under Decree No. 11. The introduction of land for industrial use into the bidding, auction and listing system was further reinforced when the National People's Congress passed the Property Law which came into force on October 1 2007.