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

Xuzhou Municipal Government has adjusted its comprehensive land compensation standards for expropriated collective agricultural land, effective from April 28, 2026. For foreign founders considering setting up operations in Xuzhou, these standards affect land acquisition costs and compliance obligations. This article summarizes the key points relevant to company registration and operations.

Xuzhou Adjusts Land Compensation Standards: Key Takeaways for Foreign Founders

Foreign founders planning to establish a presence in Xuzhou should be aware of new land compensation standards that could impact site selection, project costs, and compliance. The Xuzhou Municipal Government has issued a notice adjusting the city’s comprehensive land compensation standards for expropriated collective agricultural land, effective from April 28, 2026, until December 31, 2028. The standards apply to land expropriation for projects approved by the State Council or Jiangsu Provincial Government.

What Does This Mean for My China Company Registration?

If you are considering registering a company in Xuzhou, especially in manufacturing, logistics, or infrastructure, the updated compensation standards may affect the cost of land acquisition and the overall project budget. Understanding these standards helps you negotiate land use rights and plan for potential expropriation-related expenses. The notice emphasizes that land compensation fees, resettlement subsidies, and social security costs must be paid in full and on time, ensuring compliance and minimizing legal risks.

Compensation Standards by District

The comprehensive land compensation for expropriated collective agricultural land comprises land compensation fees and resettlement subsidies. It does not include social security costs for affected farmers, compensation for above-ground attachments, or young crops. The standards vary by district:

• Gulou District, Yunlong District, Quanshan District, and Xuzhou Economic and Technological Development Zone: Each jurisdiction is designated as a single compensation zone with a comprehensive standard of 54,000 yuan per mu (1 mu ≈ 666.7 square meters). 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 standard 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 jurisdiction is designated as a single zone with a comprehensive standard 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 fee stated above is for expropriation of dry land. If the land is paddy field or vegetable land, the fee increases by 3,000 yuan per mu and 14,000 yuan per mu, respectively.

Compensation for Other Land Types

For expropriation of collective construction land, the comprehensive land compensation standard of the corresponding zone for collective agricultural land applies. For expropriation of collective unused land, 0.7 times the standard for collective agricultural land in the same zone applies. For expropriation of lawfully obtained collective commercial construction land, compensation should be determined through parcel-specific land price appraisal in accordance with the principle of equal rights for equal land.

For land expropriation for large and medium-sized water conservancy and hydropower projects, the city’s compensation standards generally apply. However, if the standards set by the State Council or Jiangsu Provincial Government are higher, those higher standards prevail.

Social Security and Young Crop Compensation

The collection, management, and use of social security costs for expropriated farmers follow the Jiangsu Provincial Government’s measures (Su Zheng Fa [2021] No. 87) and Xuzhou Municipal Government’s implementation opinions (Xu Zheng Gui [2022] No. 4).

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

• Young crops: Crops that can be harvested as scheduled are not compensated. For other agricultural land, young crop compensation is calculated by reference to adjacent cultivated land. No young crop compensation for construction land or unused land.
• Trees and flowers: Compensation standards for general trees, economic trees, and productive flowers are specified per mu, with adjustments based on tree diameter, canopy coverage, and planting density. Trees planted in cultivated land are not compensated. Excess plants beyond reasonable density are not compensated.
• Attachments: Standards for deep-water wells, hand-pump wells, greenhouses, toilets, and plastic sheds are provided, with specific amounts per unit or square meter.

Compliance and Payment Obligations

The notice requires local governments to strictly follow the Land Administration Law regarding expropriation scope, procedures, and compensation standards. Land compensation fees, resettlement subsidies, compensation for rural residential houses, other attachments, and young crops must be paid in full and on time, and social security costs must be arranged. During implementation, attention should be paid to the transition between old and new standards and to preventing and resolving legal risks. After approval of land expropriation, any surplus in compensation and resettlement funds goes to the county-level land expropriation compensation adjustment fund account; any shortfall is covered by the local government through the same account.

The notice is effective from the date of publication until December 31, 2028. For land expropriation approved by the State Council or 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

When registering a company in Xuzhou and acquiring land use rights, foreign founders should factor in these compensation standards into their feasibility studies and budgets. The standards provide transparency for land acquisition costs, which can aid in negotiations and financial planning. Additionally, compliance with payment obligations is crucial to avoid delays or legal issues. For manufacturing or agricultural projects, the specific compensation for young crops and attachments may affect site development costs.

Foreign founders are advised to consult local authorities or professional advisors to understand how these standards apply to their specific projects. Proper due diligence on land status and compensation obligations can help ensure a smooth registration and operation process.

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

Call to Action: For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.