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

Xuzhou Municipal Government has issued new comprehensive land acquisition compensation standards for collective agricultural land, effective from April 28, 2026, valid until December 31, 2028. The standards affect land costs for projects involving land acquisition, which may impact foreign-invested enterprises operating or planning to operate in Xuzhou.

Xuzhou Updates Land Acquisition Compensation Standards

On April 28, 2026, the Xuzhou Municipal People's Government published a notice (Xu Zheng Gui [2026] No. 2) announcing adjusted comprehensive land acquisition compensation standards for collective land in the city. The new standards take effect immediately and remain valid until December 31, 2028. For foreign founders registering or operating a company in China, particularly in Xuzhou, these standards may influence land-related costs for projects that involve acquiring collective land.

Key Compensation Standards

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

These land compensation figures apply to dry land. For paddy fields, the rate increases by 3,000 yuan per mu, and for vegetable plots, by 14,000 yuan per mu.

Other Land Types and Special Cases

Acquisition of collective construction land follows the same comprehensive standard as agricultural land in the same zone. Acquisition of unused collective land is compensated at 0.7 times that standard. For collective operating construction land legally obtained, compensation should be determined through parcel-specific land valuation, adhering to the principle of equal rights for equal land.

For large and medium-sized water conservancy and hydropower projects, compensation generally follows municipal standards unless State Council or Jiangsu Provincial Government standards are higher, in which case the higher standards apply.

Social security costs for affected farmers are managed according to Jiangsu Provincial Government Document Su Zheng Fa [2021] No. 87 and Xuzhou Municipal Government Document Xu Zheng Gui [2022] No. 4.

Compliance and Transitional Arrangements

Local authorities 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 crops, and arrange social security funds. 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 to be transferred to the county-level land acquisition compensation adjustment fund; any shortfall is to be covered by local government through the same 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.

Compensation for Crops and Attachments

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

No compensation is provided for crops that can be harvested as scheduled. For other agricultural land, crop compensation is calculated by reference to nearby cultivated land. No crop compensation is provided for construction land or unused land.

Implications for Foreign Founders

Foreign founders establishing a company in Xuzhou or considering land acquisition for their projects should be aware of these updated standards. The compensation costs may affect project budgets and timelines. It is advisable to consult local authorities or legal advisors to understand how these standards apply to specific situations.

For assistance with company registration and operations in China, 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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