Land use

A. Any industrial investor can qualify for State-owned land through a land transfer, lease or allocation after going through legal procedures. Any project in line with industrial policy that makes optimal use of land will qualify for favorable land leases at minimum national pricing for land for industrial use. Certain projects also qualify for a favorable land lease based on Land and Resources Ministry minimum land transfer pricing. Any project that Hechi is encouraging can qualify for favorable land leasing of no less than 70 percent of the price set by national standards. Processing projects for agriculture, forestry, animal husbandry and fisheries qualify for favorable land leases of no less than 70 percent of the price set by national standards. Any investor involved in developing unused State-owned land will qualify for favorable land leases of no less than 70 percent of the price set by national standards.

B. Any project will be given priority in land use if it involves an investment of more than 2 million yuan per 667-square-meters and investment of more than 50 million yuan in fixed assets.

C. Any industrial investor can pay land use cost in installments if they have trouble paying in full, with the first payment amounting to 50 percent of the total. Under certain conditions, major industrial projects may give stock or shares to the local government to offset land costs.

D. Any tourism project with a one-time investment of 10-50 million yuan in fixed assets can use 50 percent of the land transfer fee for infrastructure and any tourism project with a one-time investment of more than 50 million yuan in fixed assets can use 70 percent of the land transfer fee for infrastructure.

E. Any greening project on wasteland involving forestation or grain can give the investor ownership of lands and plants growing on the lands. Anyone who invests in forestation or other ecological development project on State-owned wasteland can use the land for free for 50 years. Any investment in ecological development can transfer or lease land use rights and apply for an extension when the contract expires. Any ecological development project on collective rural wasteland can get land use rights via contract, leasing or bidding for 50 years and these can be inherited or transferred.

F. State-owned land for developing crops, plantations, animal husbandry, fish breeding, or poultry, as well as poverty reduction can be leased, and collective land can be obtained through a cooperation agreement or joint leasing with local government approval.

G. Any company investing more than 500 million yuan in fixed assets can get priority in land use for employee housing, and can qualify for government-subsidized housing programs.

H. Land transfer management

1. An investor can’t randomly change land use by following the land management law, getting local government approval and registering with the municipal land and resources bureau if they need to do so.

2. Any investor who fails to begin construction work 1 year after obtaining land use will be charged 20 percent of the land transfer cost and any land left idle for 2 years will be reclaimed by the local government.

3. Any investor who fails to complete the investment in fixed assets after 2 years will have the land taken back for the original transfer price, while any project investing more than 50 million yuan can apply to the Hechi government for additional time for construction work, but no more than 1 year.

4. An investor has to pay all land costs and register with the local authority before they can use the land for a mortgage.

5. No investor getting financial support for land use can transfer or lease the land for a 5–year period and has to make good on the financial support to transfer or lease the land after 5 years.

6. Any project with more than 500 million yuan in investment and which has an important influence on local economic development will be given favorable treatment.