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Xuzhou Updates Land Acquisition Compensation Standards: Key Points for Foreign Founders

Xuzhou Municipal Government has issued new comprehensive land acquisition compensation standards for collective agricultural land, effective from April 28, 2026, with detailed rates by district and rules for different land types. Foreign founders operating or planning to operate in Xuzhou should understand these standards for land use and compensation matters.

Xuzhou Updates Land Acquisition Compensation Standards

The Xuzhou Municipal People's Government has published a notice adjusting the city's comprehensive land acquisition compensation standards for collective agricultural land. The new standards, approved by the Jiangsu Provincial Government, implement the Land Administration Law and related regulations. The notice is effective from the date of publication (April 28, 2026) and remains valid until December 31, 2028. For foreign founders registering or operating a company in China, particularly in Xuzhou, understanding these compensation standards is important for land-related investments, site selection, and compliance with local regulations.

Compensation Standards by District

The comprehensive compensation for acquiring collective agricultural land consists of land compensation and resettlement subsidies. It does not include social security costs for farmers or compensation for attachments and young crops. The standards vary by district:

The land compensation figures above apply to dry land. For paddy fields, compensation increases by 3,000 yuan per mu; for vegetable fields, it increases by 14,000 yuan per mu.

Rules for Other Land Types

For collective construction land, compensation follows the comprehensive standard for collective agricultural land in the same zone. For collective unused land, compensation is set at 0.7 times the standard for collective agricultural land in the same zone. For collective operating construction land acquired lawfully, compensation should be determined through parcel-based land price appraisal, following the principle of equal rights for equal land.

For land acquisition related to large and medium-sized water conservancy and hydropower projects, compensation generally follows Xuzhou's standards. However, if standards set by the State Council or Jiangsu Provincial Government are higher, those higher standards apply.

Social security costs for acquired farmers are managed according to Jiangsu Provincial Government Notice (Su Zheng Fa [2021] No. 87) and Xuzhou Municipal Government Implementation Opinions (Xu Zheng Gui [2022] No. 4).

Compensation for Young Crops and Attachments

The notice includes an attachment detailing compensation standards for young crops and attachments on collective land. Key points include:

Notably, trees and crops planted within cultivated fields are not compensated. Compensation for young crops that can be harvested as scheduled is not provided. For other agricultural land, young crop compensation is calculated by reference to nearby cultivated land; for construction land and unused land, no young crop compensation applies. Disputes over unlisted items or standards are resolved through appraisal.

Implementation and Transition

Local governments must strictly follow the Land Administration Law regarding acquisition scope, procedures, and compensation standards. They must ensure timely and full payment of land compensation, resettlement subsidies, and compensation for rural residences, attachments, and young crops, and arrange social security costs. During implementation, attention should be paid to the transition between old and new standards and to mitigating legal risks. After approval of land acquisition, any surplus in compensation funds is transferred to the county-level adjustment fund; any shortfall is covered by local government through the adjustment fund.

For land acquisitions approved by the State Council or Jiangsu Provincial Government between January 1, 2026, and the effective date of this notice, the difference must be paid promptly according to the new standards.

Foreign founders involved in land-related projects in Xuzhou should familiarize themselves with these standards to ensure compliance and proper budgeting. For assistance with company registration and operations in China, including understanding local regulations, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

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

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