Published by ChinaMNC · Dingri

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

Xuzhou Municipal Government has published new comprehensive land compensation standards for requisitioned land, effective from April 28, 2026, valid until December 31, 2028. The standards specify compensation rates for agricultural land, construction land, and unused land, and include provisions for young crops and attachments. This article summarizes the key points for foreign founders operating or registering a company in China.

Xuzhou Updates Land Compensation Standards

The Xuzhou Municipal Government has issued a notice announcing adjusted comprehensive land compensation standards for requisitioned land. The new standards, approved by the Jiangsu Provincial Government, implement the Land Administration Law of the People's Republic of China and related regulations. For foreign founders with operations or planned investments in Xuzhou, understanding these standards is essential for assessing potential costs and compliance requirements related to land acquisition.

Comprehensive Compensation Rates for Agricultural Land

The comprehensive land compensation for requisitioned collective agricultural land consists of land compensation fees and resettlement subsidies. It does not include social security costs for affected farmers or compensation for attachments and young crops, which are covered separately.

The standards vary by district and county:

• Gulou District, Yunlong District, Quanshan District, and Xuzhou Economic and Technological Development Zone: Each jurisdiction is designated as a single zone with a comprehensive rate of 54,000 yuan per mu. This includes a land compensation fee of 28,000 yuan per mu and a resettlement subsidy of 26,000 yuan per person.
• Tongshan District: Designated as a single zone with a comprehensive rate of 53,000 yuan per mu, comprising a land compensation fee of 27,000 yuan per mu and a resettlement subsidy of 26,000 yuan per person.
• Fengxian County, Peixian County, Suining County, Pizhou City, Xinyi City, and Jiawang District: Each designated as a single zone with a comprehensive rate of 48,500 yuan per mu, including a land compensation fee of 26,000 yuan per mu and a resettlement subsidy of 22,500 yuan per person.

The land compensation fees above are for dry land. For paddy fields and vegetable plots, the rates increase by 3,000 yuan and 14,000 yuan per mu, respectively.

Compensation for Other Types of Land

Requisition of collective construction land is compensated according to the comprehensive rate for collective agricultural land in the same zone. For collective unused land, the compensation is 0.7 times the comprehensive rate for agricultural land in the same zone. For collective operational construction land obtained lawfully, compensation is determined through land parcel valuation, following the principle of equal rights for equal land.

For large and medium-sized water conservancy and hydropower projects, compensation is generally based on Xuzhou's standards. However, if standards set by the State Council or Jiangsu Provincial Government are higher, those higher standards apply.

Social Security and Young Crop Compensation

Social security costs for affected farmers are raised, managed, and used in accordance with the Jiangsu Provincial Measures for Social Security of Land-Requisitioned Farmers (Su Zheng Fa [2021] No. 87) and Xuzhou's implementation opinions (Xu Zheng Gui [2022] No. 4).

Compensation for young crops and attachments is detailed in the attachment to the notice. Key points include:

• Trees: Compensation for general trees (e.g., poplar, willow) ranges from 4,000 to 6,000 yuan per mu for new plantations and 12,000 to 15,000 yuan per mu for mature forests. Economic trees (e.g., apple, pear) have rates from 8,000 to 40,000 yuan per mu based on trunk diameter and canopy coverage.
• Specialty plants: Pepper trees, purple locust, and mulberry have specific per-mu rates. Production nursery stocks are compensated at 20 yuan per square meter if movable, or 30 yuan per square meter if not.
• Attachments: Deep water wells, greenhouses, toilets, and plastic sheds have specified compensation rates. For example, a deep water well with a diameter of 0.44m and depth of 150m is compensated at 75,000 yuan (including pump house and equipment).
• Exclusions: No compensation for young crops that can be harvested as scheduled, or for trees planted in cultivated fields. Excessive plants beyond reasonable densities are not compensated.

Implementation and Transitional Arrangements

The notice is effective from the date of publication and remains valid until December 31, 2028. For land acquisitions approved by the State Council or Jiangsu Provincial Government between January 1, 2026, and the effective date, the difference must be paid promptly according to the new standards.

Local governments are required to strictly follow the Land Administration Law regarding land acquisition 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, and arrange social security costs. After approval, any surplus in compensation funds is transferred to the county-level land acquisition compensation adjustment fund, and any shortfall is covered by the local government through the fund.

Practical Implications for Foreign Founders

Foreign founders involved in land acquisition—whether for factory construction, agricultural projects, or infrastructure—should factor these updated compensation standards into their cost calculations. The rates provide a clear framework for budgeting land costs and negotiating with local authorities. Additionally, compliance with social security and compensation procedures is crucial to avoid delays or legal risks.

For those establishing a company in Xuzhou, understanding these standards helps in assessing the overall investment climate and potential liabilities related to land use. It is advisable to consult local experts to navigate the specifics of land requisition and compensation.

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

Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.