Thursday, August 8, 2013

How the Chinese government buys back lands and appartments du build new constructions?

In China, there is no property right!

The land is conceded for a duration of 70 years.
Real estate developer and politicians always want to build more.
New constructions create wealth, generate huge profits and create jobs.
On the downside, new constructions are often ugly. They destroy a beautiful landscape, the nature, older buildings and housings.

When the government take away your "property", he will buy it back from you: pay a compensation and also allows you to buy a new appartment at a fair price in a modern building.


The compensation from the government varies. 

The actual amount of the compensation you receive from the government depends from the size of your property, its superficie, its location (city center, suburb), the state of your appartment (renovated, old).
For instance, many farmers who own lands in the nearby suburb of big Chinese cities, eagerly wait for the government to buy back their lands. In fact the compensation money given to them is huge. It is the same as winning the loterie...
Local authorities have the final word when fixing the amount of the compensation...

The amount of the compensation will also depend on the pressure you exerce on authorities.
In order to receive more, you should use your personnal network. You should know that there is not one Chinese administration but several: city, province, central government level admnistrations... And each administration doesn't speak with one voice. Check my article to better understand this.

Chinese individual can also open their to case to the public for support. For instance they can contact local medias, or go in front of a court or put some banners as on the photo.
Local administration officers don't want any bad advertisment as it could destroy their carreer and make them lose their supports!
Still Chinese indivual should beware not to go too far: They most probably will be offered a higher compensation at first. But then if they don't settle for the compensation or simply refuse to leave, mafia could come and agress them physicaly.


On this banner you can read: "if you destroy this building, you don't respect communism values. You despite communism".

In a former post, I explained that in China, having your case go public allows to put pressure on the negociations. Some Chinese workers even confine their boss. In the end it all comes to power relations between two sides.

Contrary to common belief, in China, the government can not do all he wants!

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