Published by ChinaMNC · Lhasa

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

Xuzhou Municipal Government has adjusted its comprehensive land acquisition compensation standards for collective agricultural land, effective from April 28, 2026 to December 31, 2028. This article outlines the key rates, scope, and compliance points for foreign founders operating or investing in Xuzhou.

Xuzhou Adjusts Land Acquisition Compensation Standards

The Xuzhou Municipal Government has issued a notice adjusting the city's comprehensive land acquisition compensation standards for collective agricultural land. The new standards, approved by the Jiangsu Provincial Government, implement the national Land Administration Law and its implementing regulations, as well as the Jiangsu Provincial Land Administration Regulations and the provincial government's minimum standards for comprehensive land acquisition compensation (Su Zheng Gui [2025] No. 5). The notice aims to protect the lawful rights and interests of rural collective economic organizations and farmers whose land is acquired. For foreign founders registering or operating a company in China, particularly those involved in land-related projects, understanding these standards is essential for compliance and cost planning.

How Compensation Is Calculated

The comprehensive compensation for acquiring collective agricultural land consists of two components: land compensation and resettlement subsidies. It does not include social security subsidies for farmers whose land is acquired (which are covered by separate regulations), nor does it include compensation for above-ground attachments and young crops. The rates vary by district and county, as detailed below.

District and County Rates

The following rates apply per mu (1 mu ≈ 666.7 square meters) for dry land. 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.

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

Other Land Types and Special Cases

For collective construction land, compensation follows the comprehensive rate of the agricultural land in the same zone. For collective unused land, compensation is 0.7 times that rate. For collective operating construction land lawfully obtained, compensation is determined through parcel-specific land price appraisal, 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 costs for farmers whose land is acquired are raised, managed, and used in accordance with Jiangsu Provincial Government Notice Su Zheng Fa [2021] No. 87 and Xuzhou Municipal Government Implementation Opinion Xu Zheng Gui [2022] No. 4.

Compensation for Young Crops and Attachments

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

• General trees (e.g., poplar, willow, plane tree, locust): Newly planted forests (under 3 years) with 200–300 trees per mu: 4,000–6,000 yuan per mu. Mature forests with 100–120 trees per mu: 12,000–15,000 yuan per mu.
• Economic trees (e.g., apple, hawthorn, jujube, pear, walnut, pomegranate, chestnut, persimmon, ginkgo): Compensation ranges from 8,000 yuan per mu for young trees (trunk diameter <4cm, planted over 2 years) to 40,000 yuan per mu for mature trees (trunk diameter ≥8cm, canopy coverage >55%). Similar rates apply to peach, plum, apricot, and grape.
• Pepper trees: 6,000–12,000 yuan per mu depending on diameter.
• Mulberry fields: 3,000–7,000 yuan per mu depending on diameter.
• Productive flowers and nursery stock: Movable plants: 20 yuan per square meter; non-transplantable: 30 yuan per square meter. Potted plants are not compensated.
• Structures: Deep water wells (with pump house and equipment): 75,000 yuan; without pump house: 50,000 yuan. Greenhouses: glass 200 yuan per square meter; film 120 yuan per square meter. Toilets: flush 200 yuan per square meter; brick-concrete 150 yuan per square meter; simple 100 yuan per square meter.

Note that trees and flowers planted in cultivated fields are not compensated. Compensation for trees exceeding reasonable per-mu quantities is not provided. Ancient and famous trees are handled according to landscaping department regulations. For items not listed or where compensation is disputed, appraisal-based valuation applies.

Implementation and Compliance

The notice requires local governments to strictly follow the Land Administration Law regarding acquisition scope, procedures, and compensation standards. Land compensation, resettlement subsidies, and compensation for rural residences, attachments, and young crops must be paid in full and on time. Social security costs must be arranged. Local governments must manage the transition between old and new standards and mitigate legal risks. After acquisition approval, any surplus in compensation funds goes to the county-level adjustment fund; shortfalls are covered by local governments through the same fund.

The notice took effect on April 28, 2026, and is 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.

Implications for Foreign Founders

Foreign founders involved in land acquisition—whether for factory construction, agricultural projects, or infrastructure—should note these updated rates to budget accurately and ensure compliance. The standards provide transparency and predictability for compensation costs. However, land acquisition in China is subject to complex procedures; engaging local legal and valuation professionals is advisable. This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.