Laws of the People's Republic of China

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II LEASING OF USE-RIGHTS TO STATE-OWNED LAND

CHAPTER III TRANSFERENCE OF LEASEHOLD ON STATE-OWNED LAND

CHAPTER IV SUBLEASING OF LEASEHOLD ON STATE-OWNED LAND

CHAPTER V MORTGAGING OF STATE-OWNED LAND USE-RIGHTS

CHAPTER VI TRANSFERENCE, RENTING OUT AND MORTGAGING OF USE-RIGHTS TO ADMINISTRATIVE - HELD LAND

CHAPTER VII LEASING AND TRANSFERENCE OF RIGHT TO USE COLLECTIVE-OWNED LAND

CHAPTER VIII LEGAL LIABILITIES

CHAPTER IX SUPPLEMENTARY PULES

CHAPTER I GENERAL PRINCIPLES

   Article 1. In consideration of the needs of the Hainan Special Economic Zone (SEZ) for development and construction and for the rational development, use, management and protection of land, the provincial People's Government adopts the Provisions of the Hainan Special Economic Zone for Land Leasing and Transference of leasehold (referred to as Provisions hereinafter) in accordance with the Law of Land Administration of the People's Republic of China and other related laws and regulations and with reference to the actual conditions of the SEZ.

   Article 2. Land referred to in the Provisions comprises the developed and undeveloped arable land, forest land, grassland, surface waters, shallows, barren mountains, wasteland and land sites for construction.

   Article 3. On the principle of separation of land use-rights from land ownership, the SEZ practices a tenured land lease system which allows transference of leaseholds. Public installations and underground resources, treasure troves and hidden wealth are not included in the sphere of land leasing and leasehold transference as referred to in the provisions.

Land under lease or be further transferred still belong to the ownership of the state of the People's Republic of China or the collectives of laboring masses.

   Article 4. Businessmen from outside the People's Republic of China and enterprises, institutions, government organs, social bodies and other establishments and individuals at home can acquire land use-rights in accordance with the Provisions and by performing the procedures required for land leasing and transference of leasehold.

The land lessee may, in accordance with the Provisions, transfer, sublease or mortgage the landuse-rights to others, or use the right as contributing factors in establishing joint equity or cooperative ventures with other units or individuals.

Activities of land development, use