Published by ChinaMNC · Ritu

Xuzhou's New Rules on Compensation for Collectively-Owned Land and Housing: What Foreign Founders Need to Know

A practical guide for foreign founders on Xuzhou's 2026 measures for compensating owners of houses on collective land, covering scope, procedures, valuation, and dispute resolution.

Overview of the Measures

On February 3, 2026, the Xuzhou Municipal Government issued the Measures for Compensation for Houses on Collectively-Owned Land in Xuzhou Urban Area (Xu Zheng Gui [2026] No. 1). The measures aim to standardize compensation for expropriation of houses on collective land and protect the rights of property owners, based on the Land Administration Law, its implementing regulations, and Jiangsu Province's land regulations.

Geographic Scope

The measures apply within Xuzhou's urban area, excluding Tongshan District and Jiawang District. Foreign founders with operations or property interests in the covered areas should note this exclusion.

Who Is Considered the Expropriated Party

The "expropriated party" is defined as the owner of the house on collective land. Foreign founders who own or lease such properties (directly or through a Chinese entity) may be affected if their site is subject to expropriation.

Key Principles

• Compensation before relocation: Compensation and resettlement must be provided before relocation occurs.
• Funds security: Compensation funds must be fully in place, deposited in a dedicated account, and used exclusively for that purpose.
• Freeze on changes: After the pre-expropriation announcement, new construction, reconstruction, expansion, or changes to land use are suspended.

Compensation Plan and Public Consultation

The district government drafts a land expropriation compensation and resettlement plan based on land surveys and social stability risk assessments. For housing expropriation, the plan must include:

• Scope and implementation timeline;
• Compensation and resettlement methods;
• Standards for various compensations, subsidies, and rewards;
• Contract signing period, transition method and duration, relocation period, and early relocation reward period;
• Location and settlement standards for resettlement housing;
• Other necessary items.

The draft plan must be published for at least 30 days in the affected subdistrict (town), community (village), and village group, as well as on the district government website, to solicit opinions. If more than half of the members of the affected rural collective economic organization object, a hearing must be held; if fewer object but the district government deems necessary, a hearing may be held. The plan may be revised and republished accordingly.

Eligibility for Compensation

Individuals who move their household registration into the area due to birth, marriage, military service, retirement, enrollment in higher education, or release from prison, and who meet household registration rules, may receive compensation and resettlement on the same terms as members of the rural collective economic organization.

Determining Legal Building Area

Compensation is based on the legally recognized building area, primarily as recorded in the property ownership certificate or real estate registration certificate. If only a homestead certificate or rural construction land permit exists without a property certificate, the legal area is determined as follows:

• If actual area is less than 1.4 times the area on the homestead certificate or construction permit, the actual area is recognized.
• If actual area equals or exceeds 1.4 times that area, the area is capped at 1.4 times; any excess is not recognized.

If neither a homestead certificate nor a property certificate exists, the district government first confirms the homestead rights and area, then applies the above rules.

Exclusions from Compensation

No compensation or resettlement is provided for:

• Illegal construction;
• Temporary structures that have exceeded the approved period;
• New construction, reconstruction, or expansion of houses and ground attachments carried out without authorization after the pre-expropriation announcement.

Compensation and Resettlement Options

Expropriated parties may choose monetary compensation or property exchange.

• Monetary compensation: The house is appraised by a qualified real estate appraisal agency, and compensation is based on the appraised value. Consistent with state-owned land policies, a "home purchase card" may be used to buy new commercial housing.
• Property exchange: Resettlement area is based on the legally recognized building area, and settlement follows the rules for state-owned land house expropriation.

The appraisal agency is selected through negotiation among expropriated parties; if no agreement is reached within the specified period, the expropriation department organizes a random draw supervised by a notary public.

Non-Residential and Mixed-Use Properties

For non-residential houses, compensation is provided for losses caused by suspension of business, with standards referencing those for state-owned land non-residential houses. If residential property is used for non-residential purposes, the "residential-to-non-residential" standards for state-owned land apply. However, if a residential house is rented or lent to others for non-residential use, it is still treated as residential, and no resettlement or compensation is given to the tenant or borrower.

Transition and Moving Subsidies

The compensation agreement must specify the transition period for both immediate and future resettlement housing. If the expropriated party arranges their own transition housing, a temporary resettlement subsidy is paid. A moving subsidy is also paid based on the legally recognized building area.

Dispute Resolution

If no compensation and resettlement agreement can be reached within the expropriation period, the district government may make a compensation decision for the individual party. If the party neither applies for administrative reconsideration nor files an administrative lawsuit within the statutory period and fails to relocate within the period specified in the compensation decision, the district government may apply to the people's court for enforcement.

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