Published by ChinaMNC · Nielamu

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

Xuzhou Municipal Government has adjusted its comprehensive land expropriation compensation standards, effective immediately and valid until December 31, 2028. The new rates apply to collective agricultural land and affect land acquisition costs for businesses operating in the region.

Xuzhou Adjusts Land Expropriation Compensation Standards

The Xuzhou Municipal People's Government has issued a notice adjusting the city's comprehensive land expropriation compensation standards for collective land. The new standards took effect on the date of publication (April 28, 2026) and remain valid until December 31, 2028. The adjustment follows the national Land Administration Law, its implementing regulations, the Jiangsu Provincial Land Administration Regulations, and a provincial notice on minimum standards for comprehensive land expropriation compensation.

For foreign founders registering or operating a company in Xuzhou, understanding these standards is important when assessing potential land acquisition costs, compensation obligations, or disputes related to land use. The notice clarifies how compensation is calculated for different land types and specifies additional payments for certain crops and attachments.

Comprehensive Compensation Rates by District

The comprehensive land expropriation compensation for collective agricultural land consists of two components: land compensation and resettlement subsidies. It does not include social security costs for expropriated farmers or compensation for above-ground attachments and young crops, which are covered separately by other regulations.

The standards vary by district, with each district defining a single compensation zone:

• Gulou District, Yunlong District, Quanshan District, and Xuzhou Economic and Technological Development Zone: Comprehensive rate of 54,000 yuan per mu, comprising land compensation of 28,000 yuan per mu and resettlement subsidy of 26,000 yuan per person.
• Tongshan District: Comprehensive rate of 53,000 yuan per mu, comprising land compensation of 27,000 yuan per mu and resettlement subsidy of 26,000 yuan per person.
• Fengxian County, Peixian County, Suining County, Pizhou City, Xinyi City, and Jiawang District: Comprehensive rate of 48,500 yuan per mu, comprising land compensation of 26,000 yuan per mu and resettlement subsidy of 22,500 yuan per person.

These land compensation figures apply to dry land. If the expropriated land is paddy field, the rate increases by 3,000 yuan per mu; for vegetable plots, the increase is 14,000 yuan per mu.

Compensation for Other Land Types

Expropriation of collective construction land follows the comprehensive rate for collective agricultural land in the same zone. For collective unused land, the compensation is 0.7 times the rate for collective agricultural land in the same zone. For collective operating construction land acquired legally, compensation should be determined through parcel-specific land valuation, following the principle of equal rights for equal land.

Special Cases and Social Security

For land expropriation related to large and medium-sized water conservancy or hydropower projects, the city's compensation standards generally apply. However, if the standards set by the State Council or Jiangsu Provincial Government are higher, those higher standards prevail.

The collection, management, and use of social security funds for expropriated farmers follow the Jiangsu Provincial Measures for Social Security of Expropriated Farmers (Su Zheng Fa [2021] No. 87) and Xuzhou's implementation opinions (Xu Zheng Gui [2022] No. 4).

Compensation for Young Crops and Attachments

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

• Young crops: Crops that can be harvested as scheduled are not compensated. For other agricultural land, compensation refers to the standard for adjacent cultivated land. For construction land and unused land, no young crop compensation is provided.
• Trees: Compensation varies by type, size, and density. For example, general timber trees (poplar, willow, etc.) are compensated at 4,000–6,000 yuan per mu for new plantations (under three years) and 12,000–15,000 yuan per mu for mature trees. Economic trees (apple, pear, jujube, etc.) have rates ranging from 8,000 to 40,000 yuan per mu depending on trunk diameter and canopy coverage.
• Attachments: Standards are provided for deep-water wells, hand pumps, greenhouses, toilets, and plastic sheds, among others. For instance, a deep-water well with a diameter of 0.44 meters and depth of 150 meters is compensated at 75,000 yuan (including pump house and equipment).

The attachment also specifies that trees and flowers planted within cultivated fields are not compensated, and that portions exceeding reasonable plant densities are not compensated. Trees listed as ancient or famous trees are handled according to landscaping department regulations.

Implementation and Transition

Local governments are required to strictly follow the Land Administration Law regarding expropriation 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, as well as arrange social security funds for expropriated farmers.

During implementation, attention should be paid to the transition between old and new standards and to preventing legal risks. After land expropriation is approved, any surplus in compensation funds is transferred to the county-level adjustment fund, while shortfalls are covered by local governments through the same fund.

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

What This Means for Foreign Founders

Foreign-invested enterprises in Xuzhou that engage in land-related projects, such as manufacturing facilities, agricultural ventures, or infrastructure development, should be aware of these updated compensation standards. They may affect project costs, land acquisition negotiations, and compliance requirements. It is advisable to consult local land authorities or legal advisors for specific guidance.

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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