Published by ChinaMNC · Lazi

Xuzhou Updates Land Acquisition Compensation Standards: Key Points for Foreign Founders

Xuzhou's new land acquisition compensation standards, effective from April 28, 2026, set district-specific rates for farmland, construction land, and unused land. Foreign founders should understand these rules for site selection, expansion, and compliance.

Xuzhou Adjusts Land Acquisition Compensation Standards

The Xuzhou Municipal People's Government has issued a notice adjusting the city's comprehensive land acquisition compensation standards (征地区片综合地价标准). The new standards, approved by the Jiangsu Provincial Government, implement the Land Administration Law and related regulations. The notice takes effect from its publication date on April 28, 2026, and remains valid until December 31, 2028. For foreign founders registering or operating a company in China, especially those considering land use or expansion in Xuzhou, these standards affect potential acquisition costs and compensation obligations.

What the Comprehensive Land Price Covers

The comprehensive land price for acquiring collective agricultural land consists of two components: land compensation and resettlement subsidies. It does not include social security costs for farmers, compensation for above-ground attachments, or young crops. Those are handled separately. The standards apply to the acquisition of farmer-collective agricultural land.

District-Specific Compensation Rates

The rates vary by district and county, reflecting different economic levels. For farmland (dry land), the comprehensive price per mu is:

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

For paddy fields, the land compensation portion increases by 3,000 yuan per mu; for vegetable fields, it increases by 14,000 yuan per mu. These adjustments apply only to the land compensation component.

Rates for Other Land Types

Acquisition of collective construction land is compensated by reference to the comprehensive price for collective agricultural land in the same district. For collective unused land, the compensation is 0.7 times the agricultural land rate. For collective operational construction land acquired lawfully, compensation is determined through land parcel valuation, following the principle of equal rights for equal land.

Special Cases and Social Security

For large and medium-sized water conservancy and hydropower projects, compensation generally follows Xuzhou's standards unless standards set by the State Council or Jiangsu Provincial Government are higher, in which case those higher standards apply. Social security costs for affected farmers are governed by Jiangsu Provincial Government Notice Su Zheng Fa [2021] No. 87 and Xuzhou Municipal Government Implementation Opinion Xu Zheng Gui [2022] No. 4.

Compensation for Attachments and Young Crops

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

• Trees: Compensation for general trees ranges from 4,000 to 15,000 yuan per mu depending on maturity and purpose. Economic trees (e.g., apple, pear, jujube) have rates from 8,000 to 40,000 yuan per mu based on trunk diameter and canopy coverage. For fruit trees such as peach, plum, and grape, similar rates apply.
• Specialty plants: Pepper trees, purple locust, Chinese toon, mulberry, and production nursery stock have specific rates. For example, production nursery stock that can be transplanted is compensated at 20 yuan per square meter; non-transplantable at 30 yuan per square meter. Potted plants are not compensated.
• Structures: Deep water wells, hand pumps, greenhouses, and toilets have set compensation rates. For instance, a deep water well with pump house and equipment is 75,000 yuan; a greenhouse with glass is 200 yuan per square meter.

Only reasonable densities are compensated. Trees planted in cultivated fields are not compensated. Ancient and famous trees are handled by landscaping authorities. For items not listed or where compensation is disputed, an appraisal determines the value.

Implementation and Compliance

Local governments must strictly follow the Land Administration Law regarding acquisition scope, procedures, and compensation standards. They must pay land compensation, resettlement subsidies, and compensation for rural residences, attachments, and young crops in full and on time, and arrange social security costs. The notice emphasizes smooth transition from old to new standards and managing legal risks. After approval, surplus funds go to a district-level adjustment account; shortfalls are covered by local governments through that account. For land acquisitions approved by the State Council or Jiangsu Provincial Government between January 1, 2026, and the effective date of this notice, the difference must be paid promptly according to the new standards.

Practical Implications for Foreign Founders

Foreign founders involved in land acquisition—whether for factory construction, agricultural projects, or infrastructure—should factor these standards into cost projections. The district-specific rates mean location choices within Xuzhou can significantly affect compensation costs. Understanding what is included (and excluded) in the comprehensive price helps avoid unexpected liabilities. For projects involving existing trees or structures, the annex provides detailed rates, but appraisals may be needed for unusual cases. Compliance with social security obligations is mandatory. As always, consulting local legal and tax advisors is essential 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.