Land use rights reform and the real estate market in China: a synoptic account of theoretical issues and the property rights system

Is China′s “land use rights” legislation which distinguishes transferable “land use rights” and inalienable“land ownership”, a novel concept unknown to human kind before, or a pragmatic reversion to the private property rights system abolished by the communist revolution? Advocates the view that the latter is a more correct interpretation. As part of a “going capitalist” economic reform programme, such a reversion is manifested in the legal recognition of the leasehold tenure after the“responsibility system” in privatizing agricultural production had proved to be successful. As the development of private property rights is a prelude to market transactions, the Chinese land use rights reform should be conducive to the success of the economic liberalization policy of China, provided that there is a contemporaneous advance in the development of the rule of law and technical know‐how,such as valuation and land surveying.