The Emergence of a Land Market in China
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_o(*¿-5 THE EMERGENCE OF A I"AI\D IVIARKET IN CHINA A Thesis Submitted in Partial Fulfilment of the Requirements For the Degree of Doctor of Philosophy by Jlang Bing to Department of Economics & Centre for Asia Studies The University of Adelaide Adelaide, Australia September 1994 v¡ø.JeJ \ 1Ú\5 ì Contents Contents of Chapters List of Tables List of Figures Abbreviations Research Declaration Acknowledgments Summar5r References CHAPTER I TNTRODUCTTON (P. 17) CFIAPTER 2 SOME THEORETICAL ISSUES IN THE ANALYSIS OF TFIE ECONOMICS OF CHINA'S IAND USE (p. 28) 2. r Ideological changes and the Reform of Land system (p. 2s) 2.2 Re-constructing china's Land ownership system (p. 83) 2.3 The Management of Land with and without a Land Market (P. 38) 2.4Land Prices and Land Uses (p. 42) 2 CFIAPTER 3 CHINA'S DUAL I.AND OWNER*SHIP SYSTEM AND I"AND ADMIMSTRATION (P. 50) 3.1 The Formation of Collective Ownership of Rural Land (P. 5r) 3.2 The Formation of State Ownership of Urban t and (P. 62) 3.3 The Relationship Between State Ownership of Urban Land and Collective Ownership of Rural Land (P. 66) 3.4 Issues Related to Land Ownership (P. 73) 3.5 Land Administration (P. 80) CFIAPTER 4 THE SUPPLY OF AND DEMAND FOR I.AND UNDER THE PI.ANNED ECONOIVTY SYSTEM (P. 93) 4.I The Supply of Land (P. 94) 4.2T}ae Demand for Land and Its Management (P. f 05) 4.3 The Planning and the Market: Problems with Land Supply in a Transitional Economy (P. f 07) 4.4 Summeries (P. If 5) CFIAPTER 5 STEP ONE IN REFORM OF THE PI.A}INED I,AND MANAGEMENT SYSTEM: THE TÐ( ON NON- AGRICURURAL USE OF AGRICURURAL LAND AND I,AND usE FEES (P. r 18) 5.1 The Introduction of Land Use Fees or Land Use Tax (P L22l J 5.2Tax on Non-Ag¡ricultural Use of Agricultural t^and (TNUAL) (P. 125) 5.3 Problems Arising FYom Implementing the Land use Tax and the TNUAL and tJ:e Implications of These Transitional Reform Measures on the Experiment with a Land Market with Chinese Characteristics (p. t2g) 5.3. f The Divisions of the Land Use Tax and the TNUAL Revenue among the Central, prefectural, County and Township Governments (p. ISO) 5.3.2 The Relative Levels of the Land Use Tax Rates and the TNUAL Rates (p. rS4) 5.3.3 Diffìculties in the Current l^and Administration System (P. 139) 5.3.4 The Implications of these Tfansitional Measures for China's E>rçeriment with a l"and Market \¡/ith Chinese Characteristics (p. I4O) CHAPTER 6 STEP TWO IN REFORM OF THE PIÁ,NNED I.AND MANAGEMENT SYSTEM: THE SALE AND TRANSFER oF sTlrTE LAND USE RIGI{TS (P. 146) 6.1 The Judicial Reforms and the Laws Governing the Experiment with the Sale and Transfer of State Land Use Rights (P. r4Z) 6.2 The Experiment with the sale and Tfansfer of Land use Rights (P. 155) 4 6.2.L The Primary Market: the Sale of Land Use Rights by the State (P. 159) 6,2.2 The Secondary Market the Tfansfer of the Acquired Land Use Rigþts (P. f66) 6.2.3 The Prices for Land Use Rights (P. 175) 6.3 The Development of a Land Market with Chinese Characteristics (P. 187) CFIAPTER 7 CHINA'S URBAN I.A}ID USE PATTERNS AND THE EFFICIENCY IMPLICATIONS OF ITS CFIANGES (P. I93) 7.1 Theories on the Market Value of L"and and the Models for Equilibrium l^and Use in a Monocentric City (P. 195) 7.2 Clrinese Urban l^and l-Iser's Bid-Rent Functions and the Current Urban l^and Use Patterns (P. 2OO) 7.3 Changes to Current Urban Land Use Patterns and ttre Effìciency Implications of the Changes (P. 2f4) 7 .4 JÙlarket and Planning: tJ:e Determinants of Urban Land Use Patterns (P.2241 CHAPTER 8 CONCLUSTONS (P. 23O) 5 Llst of Tables Table 3-1. Institutional Tfansformation and Ownership of Land in Rural China (1949-1979) (P. 6t) Table 3-2. Criteria of Excessive Land Holding (p. 64) Table 3-3. city, urban Area and Built-up Area Between rgTg and 19g6 and their Percentages in tl.e Total National L,and (p. zo) Table 3-4. Relative sizes of city, urban Area and Built-up Area (p. zl) Table 3-5. Expansion of urban Area (shrqu) (unit: square Kilometres) (p. 73) Table 4-1. Authorised Land Approval Rights for Each Level of Government (p. g5) Table 4-2. State Purchase of Collective Land (p. f 05) Table 5-1. Tax Rates for using state urban l^and (p. 125) Table 5-2. Tax on Non-Ag¡ricultural Use of Agricultural l^and (TNUAL) (p. r26) Table 5-3. The Modifìed Rates of Tax on Non-Agricultural use of Agricultural Land (p. l2g) Table 5-4. Standard Annual l"and Tæ< Rates and Hubei provincial Rates (Yuan per Square Metre) (p. Ig5) 6 Table 5-5. Comparisons Between TNUAL and Some Related Costs in Liaoning Province in l99O (P. 137) Table 6-1. The Duration of Land Use Rights (P. 151) Table 6-2. Sales of State Land Use Rights in the Primary Market (P. f 6I) Table 6-3. Total t and Use Rights Supplied for Housing Development in the Primary Market in tgg2 (Unit Hectare) (P. 164) Table 6-4. Unlawful Tlansactions in Haidian District, BeiJing (P. f 70) Table 6-5. Unlau¡fi¡l Deals with Public Housing Property tn Xicheng District, BeiJing (P. l7O) Table 6-6. Donations among the Total Transactions in Haidian District, Beijing (P. r73) Table 6-7. Housing Rents in Dashelan District, BeiJing (Rent: Yuan Per Square Metre Per Month) (P. I75) Table 6-8. Land Use Right hices by Negotiation, Bidding and Auction: National (f 987-I99O) and in Shanghai and Shenzhen (1988 and 1989) (Price: Yuan Per Square Metre) (P. 177) Table 6-9. Average Land Use Right Prices by Negotiation in Shenzhen in l99f [Yuan Per Square Metre) (P. 178) Table 6-f O. The Bidding Prices for Three Groups of t^and Use Rights in Shenzhen in l99l fYuan Per Square Met¡e) (P. f 79) Table 6-f f . The Proportion of the Three Different Sale Methods'of l^and Use Rights in Shenzhen Between f 987-1989 (P. l8l) Table 6-12. National Average Housing Prices (I98O-199O) (P. 183) 7 Table 6-13. collective Land R¡rchasing costs in GuanSphou, BeiJing and Shanghai fYuan Per Square Metre) (p. 184) Table 6-14. Land Appreciation Tax Rates (Effective from January r, lgg4) (P. 186) Table 7-1. Urban L,and Use: Industrial and Residential (p. 2f l) Table 7-2. Beijing Residential Housing prices in Different suburbs (Average prices, yu¿ul per square met¡e) (p. Z22l 8 List of Flgures Figure 3-r. spatial Relations among cfængshi, shqu and J¿arrche¡wqu(p. 6e) Figure 3-3. The Power Hierarchy of L^and Administration (P. 84) Figure 3-4. The conceptual overlap of urban State Land oumership and Rural Collective l^and Oumership (p. 86) Figure 3-5. GuangzhouTþe (P. 89) Figure 3-6. Z}:tuhai Tþe (P. 90) Figure 3-7. Fushan Tlpe (P. 9l) Figure 4-1. The Short Run l"and Supply (P. gZ) Figure 4-2. ^Ilr;e t¡ng Run Urban Land Supply Curve (p. 98) Figure 4-3a. Government's Position: Rent Maximisation (p. f 02) Figure 4-3b. A Bargaining Model Between State and Collectives Over Land Compensation (P. IOS) Figure 5-1. The Impacts of a land Tax on ttre Demand for and supply of L,and in a Free Market (P. I42) Figure 5-2. The Impacts of a Land Tax on the Demand for and suppty of Land in China (P. f 43) 9 Fi$ure 7-1. The Land Rent Variations and La¡rd-Use Patterns in the Von Thunen Model (P. 196) Figure 7-2. Equilibrium I"and use Pattern in a Monocentric City The (p. re8) Figure 7-3. Bid-Rent Functions for Manufacturing and Commerce in Jinan (P. 2Ol) Figure 7-4.Ttrree Bid-Rent Functions in NanJing (p. 2O5) Figure 7-5. The Gains and l¿sses of the Current Flat Residential Rent (P. 2O7) Figure 7-6. Three Bid-Rent Functions in Ningbo (p. 2O8) Figure 7-7.TIte Welfare Impacts of Manufacturing Moving out of the CBD (P. 2 te) Figure 7-8. Impacts of Changes in the Residential Sector Reform (P. 223 l0 Abbreviations Used ln Text and Notes CASS Chinese Academy of Social Science CBD Central Business District ccP Chinese Communist Party CCPCC Chinese Communist Party Central Committee CPEs Central Planning Economies FYP Five-Year Plan GEDZ General Economic Development Tnne GLUB General Land Use Bureau IAB Land Administration Bureau MOA Ministry of Agriculture MOC Ministry of Construction MOF Ministry of Finance MOLR Ministr5r of L,and Reclamation NPC National People's Congress PRC People's Republic of China RMRB Renmin Ribao, the People's Daily SEZ Special Economic Tnne SI,AB State Land Administration Bureau SSB State Statistical Bureau TNUAL Tæ< on Non-Agricultural Use of Agricultural l^and )GIS Xinhuashe, Xinhua News Agency 11 Research Declaration for the award of any other degree or diploma in any university or fnstitute: to the best of my knowledge and belief, it contalns no 'rraterial previously published or written by another author except whelre cue reference is clearly made in the text.